A commodity is an economic good which can be traded on an exchange or in the cash market. The prices of commodity goods are mostly never constant and fluctuate on a daily basis mainly because the price of the commodity is determined after analyzing the market conditions like supply and demand.
A commodity can be any thing like the basic resources which are agricultural items like sugar, rice, wheat, soybeans, coffee, crude oil or mining products like iron, copper, nickel, gold etc. Commodity trading has become an integral part of the present and future market in reference to the financial market. There are trading brokers who provide product future quotes and charts with recent news which help to take day to day business decisions.
Commodity markets are smoother and predictable as compared to stock markets. This may be because their moves end up with supply and demand. India as product market provides number of opportunities in gold and silver future trading, agriculture product trading, copper future trading, etc.
Commodity trading is carried out at the local and global market, irrespective of any particular quality needs, i.e. it is considered of the same quality no matter who or where it is produced and all types of the same commodity are traded as a single entity.
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