Back on blogging after a long break. Just got a push from someone today morning which made me start all over again from where I had left it midway.
This post I would just be highlighting a few basics of Commodity Markets. Its not been long that this avenue has come up for retail investors and traders to participate apart from Equity markets. Its a good option for anyone looking at diversifying their portfolio.
So what are commodities and commodity markets?
Any goods that are unbranded and traded commonly, such as Gold, Silver, Zinc, Rubber, Pepper, Sugar etc are a few of them.
Basically there are two type of markets, Spot and Future (Derivative) markets. In spot goods / commodity is bought and sold in physical form, whereas in Derivative market there are instruments based on commodity are traded via regularized exchanges.
In India we have two major exchanges which are: MCX (Multi Commodity Exchange) and NCDEX (National Commodity Derivatives Exchange). Brokers get registered with these exchanges and in turn clients with brokers.
