Ascendance Of Commodity Trading
Until the recent past retail investors could do very little to actually invest in popular age-old commodities like gold, silver and oil. But with the setting up of multiple commodity exchanges in our country, retail investors have finally got a window to trade in commodity futures in a hassle free and seamless manner by using the guidance of commodity research analysts and their research reports. Commodities are leveraged products where one needs to pay initial margin to take position while trading, trade analysts are of the opinion that after equity trading, commodity trading is going to be the next big thing for investors at large. In India the commodity markets is still in its nascent stage but it is expected to grow rapidly taking a cue from its global counterparts.
In India commodities are traded largely on three exchanges i.e. NCDEX, MCX, ICEX. A whole variety of commodities can be traded on these exchanges right from popular metals like gold to daily use commodities like edible oil. Commodity trading is pretty much similar to equity market trading; however there are two principal markets i.e. spot market and derivative market. Spot market is where commodities are bought or sold for immediate delivery, commodities derivatives market caters to various financial instruments where commodities as an underlying asset are traded. To enable an investor to take informed decisions on commodity trading he or she would rely on commodity reports prepared regularly by a research analysts.
These commodity research reports are prepared uniquely for each commodity and are sought after to make prudent investment decisions by investors. With the popularity of commodity trading gaining momentum every year, competent research analysts and their research reports are both very much being sought after by both small and large investors. The recent rally of gold trading has resulted in premium demand of gold centric commodity research reports prepared by specialized analysts.These reports would be prepared by observing and taking note of important changes concerning that particular commodity. Critical analysis of such commodity research reports would enable traders as well as gold enthusiasts to decide whether to pursue or cease interest in the valuable yellow metal. These commodity research reports can also act as good parameters to make observations on trends be it upswing or gradual decline in a particular commodity. Thus to conclude, the golden age of commodities seems to have recently started in India and in the coming years it would in all probability be the amongst the hot-bed investments for all Indian investors.
by: Brian Anthony