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
Bonds
Bonds are fixed-income securities issued by governments or corporations in exchange for a loan. These...
Ichimoku Kinko Hyo
Ichimoku Kinko Hyo is a technical analysis tool that uses five lines to assess trends,...
Margin Trading
Margin trading is a strategy where traders borrow funds from a broker to amplify their...
Income Statement
An income statement is a key financial document detailing a company’s profit, loss, revenue, expenses,...
Defensive Stock
A defensive stock refers to shares of companies that provide stable and consistent returns and...
Bottom Line in Finance
In finance, the 'bottom line' refers to a company’s key metrics, such as earnings, profits,...
