What is mcx commodity market ?

What is mcx commodity market ?

 

Just as buying and selling is done in the stock market, so is buying and selling in the commodity market. Despite this, the commodity or futures market is slightly different from the stock market.

Commodities trading was methodically started in 1875 with the Bombay Cotton Trade Association Ltd. and following this, a Gujarati business troupe was formed in 1900 to further expand the trade of almonds, seeds and cotton.

In the commodity market, mainly raw materials are exchanged. In order to understand the concept of commodity better, we can take the example that if a chair which is made for someone to sit or any thing which is useful to someone, its trading is called a commodity. No item that is produced in the commodity market is produced to satisfy any interest or hobby.

Hence it can be said that every item used is under the commodity. Commodity is also the stage where future deals are decided on the basis of old and current prices or by analyzing these prices.

In the commodity market, the quality of the product is not taken care of but the supply of demand is more important. Quality does not matter in this market. There is only buying and selling here.

The modern commodity market has its roots in the trade of agricultural products. Wheat, gram, etc. were extensively traded in America in the 19th century, but grains such as soybean have just been included in the commodity market.

Some types of commodity: –
* MC: Total money spent for the commodity. * CM: Commodity sold for money.
* MM: Lending money to make more money out of its interest.
* MCM: Using Money to Buy Commodity and Resell for More Money.

Leave a Comment

Your email address will not be published. Required fields are marked *