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Commodities |
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Commodities Trading |
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Commodity Derivatives have had a
long and chequered presence in India. In early 2000, the
commodities futures markets re-opened after a gap of more than
30 years and in a very short span have grown very rapidly
through the system of online screen based trading.
Commodity Derivatives markets are amongst the world’s largest
financial markets. Initially conceived as a Hedging platform
for producers and consumes in the local markets, Commodity
Derivatives trading today has evolved to provide sophisticated
Investment and Risk managed opportunities to various
organizations around the world.
Investment in commodities was traditionally done as a part of
a broader hedging strategy, has today evolved as an asset
class in its own right and offer immense potential as a
separate asset class for market savvy investors, arbitragers
and speculators.
Companies can use these markets either to mitigate their
exposure to fluctuations in raw material and finished goods
prices or treasuries to invest their surplus cash flows.
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Currently,
participants in India have the choice of trading on either the
Multi Commodity Exchange of India (MCX) or National
Commodities & Derivatives Exchange Limited (NCDEX) on a
variety of commodities spanning energy, metals, precious
metals and agricultural products.
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| Who can
trade commodities? |
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Physical market participants (firms who play a key role
within the production chain) like producers, trading
houses, manufacturers, fabricators, importers & exporters. |
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Specialized Government agencies which have mandates for
food security
Companies can use these markets either to mitigate their
exposure to fluctuations in raw materials and finished
goods prices. |
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Corporate, Treasuries, Financial institutes, HNI and
Retails clients.
Commodities trading offer immense potential as a separate
asset class for market savvy investors, arbitragers and
speculators and for treasuries to invest their surplus
cash flows.
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Reach a relationship manager for
advice: |
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