Commodity Market
Commodity Market
Blog Article
The commodity market facilitates the buying and selling of raw materials and primary products like gold, silver, crude oil, and agricultural goods. It plays a crucial role in the global economy by enabling price discovery and risk management. Commodity markets are broadly divided into:
- Spot Markets: Transactions involve immediate delivery of the commodity.
- Futures Markets: Contracts are traded for delivery at a future date, often used for hedging or speculative purposes.
The Multi Commodity Exchange (MCX) in India is one of the leading platforms for trading in commodities. Investors and traders in this market need to keep a close watch on global supply-demand trends, geopolitical developments, and weather patterns, as these factors significantly impact commodity prices. Report this page