Gold, silver, crude oil, natural gas and the MCX commodity exchange.
Commodity trading is the buying and selling of raw materials such as gold, crude oil, and agricultural produce through regulated exchanges like MCX and NCDEX in India.
Gold trading on MCX involves buying or selling standardised gold futures or options contracts on India's Multi Commodity Exchange to speculate on or hedge against gold price movements.
Silver trading in India primarily takes place on the Multi Commodity Exchange (MCX) through standardised futures and options contracts that allow participants to speculate on or hedge against silver price movements.
Crude oil trading involves buying or selling contracts linked to petroleum prices, using global benchmarks like WTI or Brent, to profit from or hedge against price movements.
Natural gas trading involves buying and selling contracts linked to the price of natural gas, one of the world's most volatile energy commodities, primarily through futures on MCX in India.
Copper trading on MCX involves buying or selling standardised copper futures and options contracts to gain exposure to one of the world's most economically sensitive industrial metals.
Zinc, aluminium and lead are industrially critical base metals traded on MCX in India, with prices driven by global supply-demand, energy costs, LME benchmarks and domestic manufacturing activity.
MCX (Multi Commodity Exchange of India) is the country's largest commodity derivatives exchange, offering futures and options contracts on metals, energy, and agri-commodities.
NCDEX (National Commodity and Derivatives Exchange) is India's leading agricultural commodity derivatives exchange, enabling price discovery and risk management for agri products.
A commodity future is a standardised exchange-traded contract to buy or sell a specific quantity of a physical commodity at a pre-agreed price on a future date.
Commodity options on MCX are contracts that give buyers the right, but not the obligation, to buy or sell a commodity futures contract at a predetermined price before expiry.
Agri commodities are farm-produced goods such as sugar, cotton and spices that are bought and sold on regulated exchanges like NCDEX and MCX using standardised futures and options contracts.
Hedging with commodity futures means taking an offsetting position in a futures contract to protect against adverse price movements in a physical commodity.
Contango is when futures prices are higher than the spot price; backwardation is when futures prices are lower than the spot price - both reveal how the market expects supply and demand to evolve.
Commodity spreads are trading strategies that profit from the price difference between two related futures contracts - either across delivery months (calendar spread) or across related commodities (inter-commodity spread).
Gold ETFs, Gold Futures and Sovereign Gold Bonds are three distinct ways to gain exposure to gold prices in India, each with different risk profiles, costs, liquidity characteristics and tax treatments.
Crude inventory data refers to weekly reports from the API and EIA that measure changes in US crude oil stockpiles, which traders worldwide use to gauge supply-demand balance and anticipate price movements.
OPEC is a group of oil-exporting nations that collectively manages crude oil production levels to influence global oil prices and market stability.
A commodity super-cycle is a prolonged, decades-long period of broadly rising or falling commodity prices driven by structural shifts in global supply and demand.
Commodities are tangible, real assets whose prices tend to rise with inflation, making them a natural hedge against the erosion of purchasing power.
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