What is commodity trading?
Today we are going to know about commodity Trading. We will also know about Top commodity trading exchanges in India and How to invest in Currency Trading.
Commodity trading formally began with the Bombay Cotton Trade Association Limited in 1875 and after that, the Gujarati Merchant Circle was formed in 1900 to expand the trade of cereals, pulses, spices, oils, almonds, grain, seeds, and cotton. That was done.
Commodity derivatives are traded on the National Commodity and Derivatives Exchange (NCDEX) and the Multi Commodity Exchange (MCX).
Agri-commodities including gold, silver, cereals, pulses, spices, oils and oilseeds, mentha oil, metals, and crude oil are some commodities traded on these exchanges.
In the commodity market, mainly raw materials (raw materials) such as cereals, pulses, mentha oil, and metals are exchanged. To understand the concept of commodity easily, we can take the example that if a table is made for one to sit or which is useful for one, then its trading can be called a commodity. There is no such commodity in the commodity market that is produced to satisfy some interest or hobby.
So we can say that almost every used thing comes under commodity. The commodity is also the stage where future deals are decided on the basis of past deals and current prices. The prices of each item are analyzed and determined.
Product quality is not given much attention in the commodity market but demand and supply are more important. Quality doesn't matter in this market. Here buying and selling takes place only on the basis of demand and supply.
Modern commodity markets are mainly in the trade of agricultural products. Wheat, gram, maize, etc. were traded on a large scale in America in the 19th century. But grains such as soybeans are still included in the US commodity market.
Listed below are the six major commodity trading exchanges in India.
1. Multi Commodity Exchange - MCX
2. National Commodity and Derivatives Exchange - [NCDEX]
3. National Multi Commodity Exchange - NMCE
4. Indian Commodity Exchange ICEX
5. Ace Derivatives Exchange - ACE
6. Universal Commodity Exchange UCX
What is currency trading?
Currency trading is the trading in which the work of buying and selling international currencies is done. Generally many banks, as well as financial trading institutions, engage in currency trading. Individual investors may engage in currency trading, attempting to profit from changes in the exchange rate of currencies. The money market The currency trading (forex) market is the largest and fastest-growing market in the world economy.
It has a daily turnover of over $2.5 trillion, which is more than 100 times the NASDAQ daily turnover. Currencies in the US change hands over $3 trillion every day in a highly professional interbank market, with electronic trading platforms directly connecting currency traders to banks around the world.
The FX markets are open 24 hours a day due to the global collaboration among currency traders.
At the end of each trading day in Asia, traders give their open positions to their partners in Europe, who give their open positions to US traders at the end of their trading day, who begin their working day and pass. The situation in Asia at the end of its trading day. And there, the circle begins again. This makes forex trading truly global and very liquid.
Investors from all over the world participate in the international money market. They buy and sell different currencies. Currency trading investors include banks, central banks (such as the Reserve Bank of India in India), investment management companies, currency hedge funds, forex brokers, and your general investors. You can earn a lot of profit by trading forex. This is a legitimate way to make a profit.
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