Commodity Market

What is a Commodity Market?

Commodity Market is a trading platform where prices of commodities are traded via Futures & Options through a recognized exchange (NCDEX & MCX)

Trading in commodities helps stabilize prices, causing transparency and fair pricing, which promotes over all growth of a nation.

What is Commodity Trading?

Commodity trading is locking prices at a future date. Eg. You want to buy a TV set for Rs 10,000/- three months from now. You feel that the price of the same TV set will increase in three months time to Rs 12,000/- Hence you pay a deposit of Rs 500/- (By way of margin money) and agree to pay Rs 9,500/- after three months i.e. at the time of collecting the TV set.

In a period of two months the price of the same TV set increases to Rs 12,000/- A newly married friend of yours, offers you Rs 11,000/- to transfer him the right to buy the same TV set booked by you. Your friend pays Rs 9,500/- to the shop owner and Rs 1,500/- to you. Thus on an investment of Rs 500/- you have earned Rs 1000/- as net profit without any real effort, your only effort was to apply your intelligence and outsmart the market.

Hence from the above example it can be construed that trading in commodity markets fetches immense monetary benefits to intelligent and well-informed people.

What are the different types of commodity trading?

Different types of commodity trading are:

Hedging
Speculating
Arbitrage

Hedging: If you are a manufacturer or exporter then you can lock the future market prices by going short in the Futures market and gaining from the price difference in the spot physical market.

Speculating: The above example cited was an example of a speculator, as the actual purchaser of the TV set was a friend, yet profit of Rs 1000/- was earned by the person who had intelligently anticipated the future price of the TV set.

Arbitrage: is a risk free form of trading in which price differences on two different exchanges in different time zones as well as different locations are locked for profit.

Commodity Market is a fascinating World, in which you can earn money, as commodities are a way of daily life, whether there are Floods, Earthquakes, Tsunamis, Terrorist attacks or a Calm Booming Economy, we need commodities day in and day out.

In India ten years back nobody knew Mutual Funds. Today even small school going kids are talking about Mutual Funds & Equity Markets. The same goes for the Commodity Market, more and more people are entering into commodity trading, and in the days to come, commodity markets will out perform all markets. Hence we at Dolly Enterprises will help you become a part of this fascinating World.

Yes it is a dream come true and we at Dolly Enterprises help you to realize your dreams. You only have to get in touch with us at freedom@dollyenterprises.com and leave your financial worries behind.