Commodity Trading
Any goods that are unbranded and are commonly traded in the market are called commodities. Commodity exchange rate deals non financial commodities such as agricultural commodities like wheat, cotton and non- agro commodities. Commodity market include spot market where commodities are brought and sold for immediate delivery. In derivative market various financial instruments are traded as commodities. Commodity future is derivative instrument for future delivery of commodity at fixed date and particular price. Commodities have fast price movement and provide increased profit. In commodity profits one is only taxed based on one’s income. Commodities have intrinsic value and always have a value.Changes in supply impact the demand; low supply equals higher prices. A commodity pool operator (CPO) is a person (or limited partnership) that gathers money from investors and then combines it into one pool in order to invest that money in futures contracts and options. CPOs distribute periodic account statements, as well as annual financial reports. They are also required to keep strict records of all investors, transactions, and any additional pools they may be operating
The major commodity exchanges in India include National Spot Exchange Limited( NSEL), Indian Commodity Exchange Limited(ICEX), Multi Commodity Exchange(MCX), National MultiCommodity Exchange of India Limited(NMCE) etc. The commodity market in India is regulated by SEBI(Security Exchange Board of India)
0 Comments