Commodity Trading & Investor Awareness

“Commodity Trading” is characterized by high market volatility and risk. Globalization and advances in technology have significantly changed the way trading is done the factors differencing prices and the frequency with which prices change has increased exponentially timely access to information and analysis is the only way to succeed in commodity.

Commodity: Any product that can be used for commerce or an article of commerce which is traded on an authorized commodity exchange is known as commodity. The article should be movable of value, something which is bought or sold and which is produced or used as the subject or barter or sale. In short commodity includes all kinds of goods. Indian Forward Contracts (Regulation) Act (FCRA), 1952 defines “goods” as “every kind of movable property other than actionable claims, money and securities”. In current situation, all goods and products of agricultural (including plantation), mineral and fossil origin are allowed for commodity trading recognized under the FCRA. The national commodity exchanges, recognized by the Central Government, permits commodities which include precious (gold and silver) and non-ferrous metals, cereals and pulses, ginned and un-ginned cotton, oilseeds, oils and oilcakes, raw jute and jute goods, sugar and gur, potatoes and onions, coffee and tea, rubber and spices. Etc. 

The primary objective of the project is to understand and know the concepts and mechanism of commodity trading with special reference to Angel Broking Ltd. The objective was also to know and analyze the growth of commodity trading in India and find out the investors perception towards it.

This project has been undertaken to give an outlook on the potential growth of commodities trading in India. This project, to an extent, also studies the current prospects of online commodities trading of Angel Broking. Thus looking from both perspectives will help to get the clear picture of current scenario of commodity market, which will enable me to arrive at conclusion for the future potential growth. 

The secondary objectives include:

  • To know about the commodity in which the investors mostly trade.
  • To know about the Commodity Exchanges preferred by investors.
  • To know the purpose of investment in commodity market.
  • To know the impact of commodity trading on commodity prices.
  • To find out the problems regarding trading in commodity market

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