Recently, the Indian Markets have now allowed retail investors as well as traders to partake in various forms of commodity derivatives. Many people are into shares, stocks as well as real estate; however, if you want to spread out and diversify commodity markets are the next best options.
Earlier not many people used to invest in commodity markets as there was little benefit. Of course, there were always people willing to invest in commodities such as gold and silver; but, various other commodities saw no signs of investment. However, the times have changed and plenty of people are flocking towards commodity trading these days. It is now possible to trade in commodity futures without actually having any form of physical stocks.
The Indian Commodity Market
The Indian Commodity Market is basically made up of two sectors the retail market as well as the wholesale market. These markets don’t juts facilitate trade within the country; but, also internationally. You may wonder what has led to the sudden boost in the Indian commodity markets – well, the main reason is the global economic situation. Since, many economies are crashing, there’s an opportunity for the others to grow. The demand is set to grow even further in the coming years and hence, if you’re planning to invest in this market, there’s surely no better time to do it than at the current moment.
The Indian Government has taken steps to ensure that almost all possible commodities are eligible for futures trading and this has helped this industry grow drastically – this is one of the main reasons to the sudden boost in Indian commodity trading. Basically to help retail investors within the country, three commodity exchanges have been set up, namely:
- The NMCE - National Multi Commodity Exchange
- Multi Commodity Exchange
- The NCDEX - National Commodity and Derivatives Exchange
Even though commodity trading in the country has grown rapidly, it’s still rather small and in its early days. However, the future of this trade is bright as the government too is backing this advancement and the liberal policies being employed would surely give this growing trend a further boost.
Just like any other market, the commodity market too comes with its own sets of risks and liabilities. But, is there anything in this world that’s totally risk free? Therefore, you need to choose your path and tread slowly in order to emerge successful.