Agar aap ek beginner trader hain, toh commodity trading vaise hi challenging sound karti hai. Before you dive into the limitless world of commodity markets, let us look at what commodities are.
Jaise aap share market me shares me deal karte hain, vaise hi commodity markets me commodities ke deal karte hain. Principle wahi hai - fark ye hai ke commodity yahan par koi bhi asset ho sakta hai that is available for trading and then it is bought or sold just like a stock. Ye commodities kya ho sakti hai? They can be related to the energy sector- so fuels could be commodities. That’s one.
Gold, silver, copper, steel jaise Metals bhi commodities me count hote hain.
Agricultural production - wheat, rice, corn, coffee beans - ye bhi commodities maane jaate hain. Inn sabhi commodities ka humari daily life me kuch use rehta hai. And if you think carefully, inke prices ya production volume me agar koi change aata hain, then it also impacts us - individual level pe and also the economy. For instance, food grains ya petrol ke prices ghatne ya badhne se economy me ek domino effect aata hai because people’s purchasing power gets impacted.
The point is simple: commodities are a very crucial part of the economy. Even as an investment avenue. Agar aap conventional stocks me already invest karte ho, then you will find yourself wishing to diversify your investment portfolio. Ek healthy investment portfolio me variety hona is paramount, kyuki volatile market conditions me agar ek investment loss me jaati hai to doosri acha perform karti h - and they balance it all out. Isi reason se ek savvy investor commodities me invest karna zaroor chahega.
Commodity market ka concept is also simple: it is a market that allows you to trade in several commodities.
Do tarah ki commodity markets hoti hain: one, derivatives ya future market and second, spot market. Chaliye inn dono ke baare me detail me discuss karte hain.
Spot market ka matlab hota hai ke commodities ka sale aur purchase on the spot hoga - in simple words, buyer aur seller ke beech jo contract sign hota hai, it provides for an immediate delivery of the commodities. Ofcourse, iska ye matlab nahi ke usi waqt aapko wheat ya gold physically deliver hota hai, but warehouse receipts ke through the transaction on the commodity exchange is said to be completed. Actual physical delivery kuch dino me kar di jaati hai.
On the other hand, futures ya derivatives market me bhi commodities trade ki jaati hain.
So, in commodity futures markets, contract is signed for the delivery of the commodities, but this is where it becomes different: iss contract ke mautabik commodity ki delivery ek future date par hogi, but uska price ya rate aur quantity advance me decide kar li jaati hai.
We can also classify types of commodity markets according to the type of commodity itself: that way, the types of commodity markets would include bullion commodity markets jahan gold aur silver ka trade hota hai, Base metal market where metals like Aluminum, Brass, Copper, Lead, Nickel, Zinc are traded Energy commodity markets where crude oil and natural gas are traded Agricultural commodities where we could trade Black pepper, Rice, Wheat, Coffee beans, Cardamom, Castor seed, Cotton, Crude palm oil, Mentha oil, Palmolein, Rubber etc.
Jis tarah share market ki transactions aur trades stock exchange par kiye jaate hain, commodities ke trades bhi commodity exchanges par hote hain.
We have the National Commodity and Derivatives Exchange, or NCDEX for short, jahan agricultural commodities trade ki jaati hain. So you will see cereals aur pulses ki sub-categories jahan wheat, moong, basmati rice, maize, barley and chana trade hote hain. FIbre sub-group ke under cotton aur jute ka trade hota hai, spices me pepper, jeera, coriander and turmeric and oil seeds me castor seed, soybean, mustard seed, crude palm oil, refined soy oil and cotton seed oil cake
Then there is the Multi Commodity Exchange jise hum short me MCX kehte hain. MCX par bullion se lekar base metals aur energy aur agricultural commodities sbahi ka trade kiya jaata hai.
Then we have the Indian Commodity Exchange (ICEX) jo agricultural aur non-agricultural products ke trades me deal karta hai. Agricultural products toh hume pata hi hain, jaise spices, oil and seeds, rubber, raw jute, rice, isabgol. Inke alawa ek ICEX par ek non-agricultural commodity ka trade bhi hota hai and that is diamond.
Commodity markets me aapko hedgers, speculators aur abritrageurs jaise aur players milenge. Inke baare me hum detail me ek alag episode me baat karenge, lekin bottom line ye hai ke agar aap apne investment portfolio ko diversify karne ke liye commodity trading consider kar rahe hain, toh aapko commodity markets ke baare me basic knowledge honi chahiye. Iske saath you should be keen on understanding how commodity markets work.
Equity markets me invest karne se pehle bhi toh aap research karte hain, historical trends aur share prices ki movements ko study karte hain, bas usi tarah commodities ke prices ko bhi track karne aur predict karne ka skill is very crucial if you want to invest in the commodity market by entering in either a spot contract or a futures contract.
Commodity prices ko kayi factor influence karte hain - demand, supply, economic events, political climate, and the list goes on. Commodity markets me invest karna can be tricky but long run me, it definitely pays off. Open a demat account with Angel One and get all the professional advice you need to get started!