introduction of Commodity Market, Commodity markets in India, Structure of the Commodity market, Flow digram of Commodity Market, Difference between bilateral and commodity exchange and Avenues of Commodity Market.
Incoming and Outgoing Shipments in 3 STEPS Using Odoo 17
Commoditymarket
1.
2. Indian markets have recently thrown
open a new avenue for retail investors and
traders to participate: commodity
derivatives.
3. A commodity may be defined as an
article, a product or material that is brought
and sold.
Example: Copper, Corn , Crude oil etc.,
4. Raw commodities are traded on
regulated commodity exchanges.
It is similar to an equity market.
5. NCDEX- National Commodity and
Derivative Exchange
MCX- Multi Commodity Exchange
NMCE- National Multi Commodity
Exchange of India Limited
6. The Basic Market Structure And Mechanism
Of The Market is:
Spot Market
Market where commodities are bought and sold in
physical form by paying cash is a spot market. The price
on which commodities are traded in this market is called
spot price.
This market can also be called as Physical Market/ Cash
Market
7. The Basic Market Structure and Mechanism
of The Market is:
Spot Market
Futures Market
The market where the commodities are bought and sold
by entering into a contract to settle the transaction at
some future date and at a specific price is called futures
market.
8. The exchanges have circuit filters in
place. The filters vary from commodity to
commodity but the maximum individual
commodity circuit filter is 6%. The price of
any commodity that fluctuates either way
beyond its limit will immediately call for
circuit breaker.
10. Exchange has a common platform for all
traders where as in bilateral restricted access.
Price transparency where as traded prices
are unknown to other players.
Absence of counter party risk where as
presence of counter party risk(credit risk)
Market prices are available to wider world
where as difficulty in price discrimination
11. Commodity Futures
A standardised agreement to buy/sell
an asset in the future, at a price agreed
today.
Commodity Exchange Traded Funds
Commodity Stock
Commodity Mutual Funds
12. Commodity Futures
Commodity Exchange Traded Funds
(ETFs)
Commodity exchange traded funds
generally are index funds and track
commodity index.
Commodity Stock
Commodity Mutual Funds
13. Commodity Futures
Commodity Exchange Traded Funds
Commodity Stock
Stocks which belong to commodity
related sectors like metals, energy,
agriculture etc.,
Commodity Mutual Funds
14. Commodity Futures
Commodity Exchange Traded Funds
Commodity Stock
Commodity Mutual Funds
Mutual Funds which invest in stocks
belonging to commodity sectors or fund of
funds which invest in other commodity
funds etc.,
16. Lack of storage Facilities
Existence of legal contract
Need of standard of grading
Differing methods of payments
Need of market information
To guarantee the contract