commodity trading in India


Commodity trading is one of the sectors where investors have shifted their base in building wealth. Many commodities are traded daily, making commodity trading in India one of the essential parts of trading for investors. So let’s understand from scratch as a beginner what commodity exchange in India is?

In simple words, commodity means any physical thing such as clothes, food, Jewellery, metal, or any other resource.  The demand and supply of these things keep changing and thus the price changes or fluctuates. These fluctuations help commodity trading in making money. The commodity is not bought or sold but money invested in the dematerialized commodities. The commodities are normally categorized as metals, agriculture, energy, and meat products. With online commodity exchange, anyone with a computer or mobile and internet connection can deal on a single platform with many buyers or sellers freely. Anyone can trade in the commodity market provided the person has a basic knowledge of commodity exchanges in India. There were six national commodity exchanges in India namely MCX, NCDEX, ICEX, NMCE, ACE, and UCX. NMCE was the oldest one whose journey ended by merging into ICEX. The comex NMCE was launched in the year 2002. The UCX, the sixth national commodity exchange in India shut down in 2014 within 2 years from its launch.

The four national commodity exchanges in India are:

  1. MCX: Multi Commodity exchange of India was launched on 10th Nov 2003 and is based in Mumbai. The largest for gold and silver, second largest for natural gas, and third largest comex for crude oil. Energy, agricultural commodities, metal, and bullion are the products in which this MCX trades.
  2. NCDEX: Founded on 15th Dec 2003, National Commodity and derivatives exchange focuses on agricultural commodities. It is a standard for spices. It trades in Wheat, soya bean, castor seed, cotton, barley, etc.
  3. ICEX: Regulated by SEBI, Indian commodity exchange limited trades in agricultural commodities till 5 pm and in non-agricultural commodities till 11.30 pm. The world’s first contract in diamond Derivatives was started by ICEX. PNB, IDFC Bank are shareholders of ICEX. The products such as steel, diamond, agricultural products like black pepper, castor seeds, Isabgul seeds, etc.
  4. ACE: Founded on 26 October 2010, Ace Derivatives and commodity exchange Where ACE is Ahmedabad Commodity exchange. This exchange deals with contracts in soy oil, castor seeds, gold silver, and various crops. This is one of a kind where a regional market became a national market in a short time.  

Some many brokers and traders provide excellent commodity exchange strategies to earn a profit. Commodity exchange platforms act as a medium for enabling investors to trade.

Real guru assists investors with opening commodity trading account in easy steps. Commodity trading is mostly in futures and options of products such as metal, agriculture, energy, minerals, and meat products. Real guru has helped many investors to build wealth for their future, with investing tips.



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