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.
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