What is Commodity Trading: Overview & Benefits of Investing
Introduction
Commodity trading is a prevalent term in the investment world. Beyond stocks, many commodities are traded in markets, and investing in them can diversify your portfolio and enhance gains. Things can yield substantial returns over time due to their fluctuating prices when approached with prudence.
What are Commodities?
Commodities are fundamental raw materials utilised in the production of everyday goods. They are the backbone of the global economy, encompassing items such as oil, sugar, metals, and more. Gold, corn, crude oil, coffee, and wheat are among the most extensively traded commodities worldwide. The price movement of one commodity can have ripple effects globally. For instance, a surge in crude oil prices can impact economies and industries worldwide.
Commodity Exchanges in India
Similar to stock exchanges, India boasts several commodity exchanges. These platforms facilitate the buying and selling commodities, ensuring a transparent and efficient trading process.
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