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What Are Commodities and How Are They Traded

Commodities are raw materials like gold, crude oil, and agricultural products that are traded in markets. Investors trade them through futures and options contracts on commodity exchanges, where prices move based on global demand-supply, economic trends, and geopolitical factors. Trading commodities helps diversify portfolios and hedge against inflation.

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What Are Commodities and How Are They Traded

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  1. Read blog - https://navia.co.in/open-commodities-trading-account What Are Commodities and How Are They Traded?

  2. Read blog - https://navia.co.in/open-commodities-trading-account What Are Commodities? • Commodities are basic goods or raw materials used in everyday life and industries. • They are standardized products, meaning each unit is the same quality and quantity. • Examples: Crude oil, gold, silver, natural gas, wheat, coffee, sugar, cotton.

  3. Read blog - https://navia.co.in/open-commodities-trading-account Types of Commodities • Hard Commodities: Natural resources that are mined or extracted, e.g., gold, crude oil, metals. • Soft Commodities: Agricultural products or livestock, e.g., wheat, coffee, sugar, cotton.

  4. How Commodities Are Traded Read blog - https://navia.co.in/open-commodities-trading-account • Traded on commodity exchanges like MCX (India) or CME (USA). Can be traded through: • Spot market: Immediate delivery and payment. • Futures contracts: Agreement to buy/sell at a future date at a predetermined price. • Traders use technical and fundamental analysis to make decisions.

  5. Why Trade Commodities? Read blog - https://navia.co.in/open-commodities-trading-account • Hedging: Protects businesses from price fluctuations (e.g., airlines hedge fuel prices). • Speculation: Traders aim to profit from price movements. • Diversification: Investors add commodities to balance risk in a portfolio. • Global Demand: Prices react to supply, demand, and geopolitical events, creating opportunities.

  6. Disclaimer Investment in securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are for illustrative purposes and are not intended as recommendations. Brokerage will not exceed the SEBI prescribed limit. Navia Markets Ltd ,SEBI Registration No.INZ000095034-NSE Member code for CM, FAO & CD: 07708 - BSE Clearing No. for CM, FAO & CD: 6341-MCX Member ID: 45345 NSDL DP ID: IN300378-CDSL DP ID: 12086500-SEBI Registration No. for DP: IN-DP-311-2017-GST Registration number :33AAACM4739R2ZZ-Registered office: Ganga Griha, 4th & 5th Floor, No.9, Nungambakkam High Road, Chennai - 600 034 Email ID: ig@navia.co.in - Contact No: +91 70100 75500 https://bit.ly/naviadisclaimer Read blog - https://navia.co.in/open-commodities-trading-account

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