Thread: Grow with Commodities

Commodity futures trading is not new in India as its history can be traced way back from the year 1875 where cotton futures were first traded by the Bombay cotton trade association ltd, India being an agrarian economy where more than 2/3rd of its population depends upon agriculture cannot grow without a robust and healthy commodity market. The Government recognizing the importance of the same has introduced nationalized online trading bourses namely NCDEX, MCX and NMCE.

The commodity market is a good diversifier from the usual investment options due to the following reasons

* Highly uncorrelated with other markets like equity, debt.
* Less volatile as price is discovered due to demand and supply, which do not change intraday
* Commodities will always remain valuable and can never get delisted like shares.

Investors, traders, farmers, corporate, speculators, arbitrageurs all can participate in this growing market as there is immense scope for future growth due to further liberalization, increasing awareness and maturity in the coming years.

nice one!i am a new trader.i want to do online trading.still doing my research on the issue!

I'm really interested in futures trading, but I hear it's more risky because of the great deal of leverage. What are your thoughts on this?