As we all know that Commodity Market is that part of market where investment is done primarily on economic sector rather than the products that are manufactured there are two types of commodities hard and soft commodities. Traders take commodity advice so that if they are new and confused to invest in which commodity these suggestions can help them.
A commodity market trades in raw or primary products rather than manufactured products where trading of various such as gold, silver copper and various base metals which come into hard commodities in this market people take commodity tips and trade also in soft commodities like wheat, livestock, coffee, cocoa, and sugar.
More recently developed markets include those for emissions, electricity, and cell phone minutes. Well-developed commodity markets require that the commodities be well-defined and standardized commodity markets can include physical trading of the actual commodity or a variety of derivative contracts including spot contracts, forwards, futures, options on futures and swap contracts.
Physical commodities trading constitutes of financial markets development in the modern era. The so-called financialization of the commodity market which occurred over past two decades when derivatives were underwritten on the commodities markets constituted significant part of investors portfolios held for the purpose of diversification.Fraud on the physical commodities markets has existed throughout history, but the recent trend of financialization which has two consequences in terms of fraud and misconduct done in accordance to the commodity markets.
In this segment or in this market buying and selling of commodities is done via multi commodity exchange where trading of these commodities is done the profit ratio in this market is somewhat slightly greater in comparison to equity market there are a many people who are interested to invest in this market traders trend to invest more and more.
In this market traders are expeected to earn more than in cash market as the valuse of base metals is good.
