Commodity
A commodity refers to physical goods and raw materials such as aluminium, cotton, copper, sugar, steel, zinc, and others. These commodities are essential in daily life, industries, and businesses. In India, commodities cannot be traded like stocks directly. Instead, commodity traders enter into the following types of contracts to secure commodities or profit from price fluctuations: - Futures contracts. - Options contracts. These derivative contracts are traded on commodity exchanges in India, including: - Indian Commodity Exchange (ICEX). - Multi Commodity Exchange of India (MCX). - National Commodity & Derivatives Exchange Limited (NCDEX). These exchanges facilitate the buying, selling, and hedging of commodities.
Related Terms
MACD
MACD (Moving Average Convergence Divergence) is a popular technical indicator used to spot changes in...
Capital Expenditure
Capital expenditure (CapEx) is the funds a company allocates to acquire, maintain, or upgrade long-term...
Cash Commodity
A cash commodity, also called an 'actual,' is a tangible goods—such as aluminum, cotton, gold,...
Call Option
A call option is a derivative contract granting the right, but not the obligation to...
Exponential Moving Average
Exponential Moving Average (EMA) is a technical indicator used in trading to follow price trends...
Arbitrage
Arbitrage is a trading strategy that exploits small price differences for a security across markets...
