Commodity in Trading in India, Hard and Soft



In India commodity is an agricultural product or raw material that can be bought and

sold. E.g. gold or sugar.

There are 2 types of commodities in India that are traded in the market.

Soft commodities in India are agricultural products. E.g. Sugar,
Coffee, Wheat.

Hard commodities in India are mined products. E.g. Silver, Gold, Oil and Rubber.

The price of the commodity in India depends on the supply and demand in the market. Commodities can be traded on the commodity exchanges i.e. you would need a Demat account to trade in commodities.

Below are few benefits listed from the commodity trading in India.


Commodities give more liquidity.

In commodity trading in India it is equally easy to both buy and sell futures and an investor can easily liquidate his trades whenever required.

Holding Actual Physical Gold.

Physical Gold is a product by which investors can take investment traded in de-materialized physical gold using the futures market. In this condition, were Indian investor can hold physical gold, in a safe deposit vault approved by the exchange, which is reflected in the demat account.

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