Chapter 18 - Introduction to Commodities And Commodity Trading
Chapter 18 - Introduction to Commodities And Commodity Trading
As we all know, a market where commodities are traded is referred to as a commodity market.
18.1 What are commodities?
Commodities are natural products that grow (such as wheat, rice, etc.)
18.2 History of commodity market in India
The Indian experience in commodity futures market dates back to thousands of years.
18.3 Commodity exchanges in India
Just as stocks and stock derivatives are traded in stock exchanges, commodity derivatives are traded in...
18.4 Commodities traded in India
18.4 Commodities traded in India
The different commodities that trade on various commodity exchanges can broadly be classified as below
18.5 Commodities as alternative asset
A commonly used approach is to consider as an asset class any instrument
18.6 Commodity as an investment opportunity
Commodity trading carries a lower downside risk than other asset classes, as pricing in...
18.7 How to invest in commodities?
So, what are the options for investing in commodities? As an investor, people can use many vehicles in...
18.8 What is unique about commodities?
18.8 What is unique about commodities?
From an investor’s point of view, commodity investment has certain unique features as it is...
18.9 How commodity market is organised in India?
In India, commodity trading is taking place through spot market and forward and futures contracts.
18.10 Participants in these markets
The commodities market will have three broad categories of market participants apart from brokers and...
18.11 Margins for trading in futures
18.11 Margins for trading in futures
Margin is the deposit money that needs to be paid to buy or sell each contract. The margin required for...