Commodity Trading
Medium Term Notes A commodity exchange consist various commodities and derivatives trade. Maximum commodity markets or commodity trading market in world trade in products of agricultural and other commodities like coffee, sugar ,wheat, barley, cotton corn, cocoa, dairy products, metals, pork bellies, oil, etc and these are contract based . Contracts can include spot prices and futures and options on futures contracts. Other sophisticated products may include environmental instruments, interest rates, swaps or ocean freight contracts etc. Commodity trading also consists, participation in transaction which is conducted on commodity exchange. Commodity trading's functional area, terms and conditions are very much similar to the stock exchange. These exchanges directly deal with commodities. There are no limitations of commodity traders, regarding exchange. Here traders are free to deal with number of exchange. Commodity trading is based on the existing relationship between supply and demand for a specified commodity. The very general concept of stock trading, commodity trading takes some risk factors. Investors or traders have to monitor the relationship between supply and demand. And collect the current information of price index related from the commodity trading. According to market research's report commodity trading is more consistent than other investing form. |
|
