Article by Hari
The commodities market is both a wholesale and retail market. The term commodity is a generic term for all natural resources used in the industry for the production of finished or semi-finished products, either as components or as energy entering cycle of production or delivery of the product. This market are exchanged between other copper, gold, wheat, cotton and oil.The players in this market are producers (farmers, mining companies, industrial ), financial institutions (banks, asset managers, institutional investors, hedge funds, etc.), corporations (as issuers in the primary market, or as investors), and individuals.Since the early 1980s, there was a strong development of derivatives (forwards, futures, options, warrants, swaps) so that today the bulk of trade takes place via these products.Generally, the commodities market, like other markets elsewhere, transactions take place either on organized markets or on the OTC market, also called OTC (Over-the -counter market). Organized markets, which are grants and futures markets are markets in which transactions are standardized (in terms of quantity, quality, maturity for merchandising, etc.) and there is no counterparty risk (that is to say, failure of the counterparty) due to the existence of a clearing house that comes between any buyer and seller and check their creditworthiness with daily margin calls. In contrast, the OTC market is a market where the buyer entered into the transaction directly with the seller. The transactions are less standardized, but also better fit the specific needs of operators.The few majors in commodity exchanges are:
MCX(Multi Commodity Exchange of India Ltd.): MCX presents futures trading defined in terms of type of contracts offered in 58 commodities, from various market segments including energy, bullion, iron and non-iron metals, oil seeds, and other agricultural commodities. It is the worlds first and fore most also one and only company acquired ISO 27001:2005 certification.
National Commodity & Derivatives Exchange Limited (NCDEX): It is a private limited company which has obtained Certificate for Commencement of Business in Mat 2003 and is online commodity exchange based in India.
In India there are many companies and agencies for commodity trading tips, they are also known as commodity tips provider. They provide tips in commodity market on the basis of technical analysis and fundamental analysis. Now a days many techniques are used for the generation of calls in commodity market such as by the help of chart technique, candle stick technique etc. But the best technique i ever found is technical analysis.The commodities market is now almost entirely paperless (more as paper) and electronic (very few transactions “open outcry”). Trade is mainly conducted via the CME Group, which contains the CBOT (Chicago Board of Trade), CME (Chicago Mercantile Exchange), NYMEX (New York Mercantile Exchange) and COMEX (New York Commodity Exchange). It is currently the largest trading exchange futures (contracts) with the widest choice of commodity contracts. LME (London Metal Exchange) and ICE (Intercontinental Exchange), formerly NYSE, are the other two major stock exchanges trading commodities.Commodity Trading Tips
Awadesh Kumar ChawdaCapitalVia Global Research Ltd.Best Commodity tips Providing Company