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    UNDERSTANDING THE INDIAN COMMODITIES MARKET
 
 
Related FAQ
 
  1. What is a commodity?
    The dictionary defines commodities as 'Something useful that can be turned to commercial or other advantage'. Commodities refer to things which in day-to-day life, we simply take for granted like the wheat in our bread, the cotton in our clothes, the gold in our ornaments, the petrol in our cars and so on. However, what many don't know, is that these very ordinary items are also one of the finest investment avenues available.

    The term 'commodity' includes all kinds of goods. FCRA defines 'goods' as 'every kind of movable property other than actionable claims, money and securities'. Futures' trading is organized in such goods or commodities as are permitted by the Central Government. At present, all goods and products of agricultural (including plantation), mineral and fossil origin is allowed for futures trading under the auspices of the commodity exchanges recognized under the FCRA. The national commodity exchanges have been recognized by the Central Government for organizing trading in all permissible commodities which include precious (gold and silver) and non-ferrous metals; cereals and pulses; raw jute and jute goods; sugar, gur, potatoes, coffee, rubber and spices, etc.  

  2. What are commodity futures?
    Commodity Futures are contracts to buy specific quantity of a particular commodity at a future date. It is similar to the Index futures and Stock futures but the underlying happens to be commodities instead of Stocks and Indices
 
 
 
 
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