Embarking on the intriguing journey of commodity trading involves the buying and selling of various commodities and their derivative products. A commodity, be it wheat, gold, or crude oil, encompasses raw materials or primary agricultural products that can be traded. Engaging in commodity trading presents an opportunity to diversify your asset portfolio.
Types of commodities in India
- Metal: This category includes metals like iron, copper, aluminium, nickel, gold, silver, and platinum, used in construction and manufacturing.
- Energy goods: Household and industrial energy goods, such as natural gas and oil, dominate this category. Other energy commodities encompass uranium, ethanol, coal, and electricity.
- Agricultural goods: Various agricultural and livestock products are traded in the commodity market, including sugar, cocoa, cotton, spices, grains, oilseeds, pulses, eggs, and feeder cattle.
- Environmental goods: This category covers carbon emissions, renewable energy, and white certificates. Globally, commodities like gold, silver, crude oil, natural gas, soybeans, cotton, wheat, corn, and coffee are among the most traded in the commodity market.
