Upload
naira-puneet-bhatia
View
219
Download
0
Embed Size (px)
Citation preview
8/3/2019 A Commodity is a Good for Which There is Demand
1/13
A commodity is agoodfor which there is demand, but which is supplied withoutqualitative
differentiationacross amarket. Commodities are often substances that come out of the earth andmaintain roughly a universal price.[1]A commodity has full or partialfungibility; that is, the
market treats it as equivalent or nearly so no matter who produces it. Examples arepetroleum
andcopper.[2]
The price of copper is universal, and fluctuates daily based on global supply and
demand. Stereo systems, on the other hand, have many aspects of product differentiation, such asthebrand, the user interface, the perceived quality etc. And, the more valuable a stereo is
perceived to be, the more it will cost.
In contrast, one of the characteristics of a commodity good is that its price is determined as a
function of its market as a whole. Well-established physical commodities have actively tradedspotandderivativemarkets. Generally, these are basic resources andagriculturalproducts such
asiron ore,crude oil,coal,salt,sugar,coffee beans,soybeans,aluminium,copper,rice,wheat,
gold,silver,palladium, andplatinum. Soft commodities are goods that are grown, while hard
commodities are the ones that are extracted through mining.
There is another important class of energy commodities which includes electricity, gas, coal andoil. Electricity has the particular characteristic that it is either impossible or uneconomical tostore, hence, electricity must be consumed as soon as it is produced.
Commoditization(also called commodification) occurs as a goods or services market losesdifferentiation across its supply base, often by the diffusion of theintellectual capitalnecessary
to acquire or produce it efficiently. As such, goods that formerly carried premiummarginsfor
marketparticipantshave become commodities, such asgeneric pharmaceuticalsandsiliconchips.
There is a spectrum of commodification, rather than a binary distinction of "commodity versus
differentiable product". Few products have complete undifferentiability and hence fungibility;even electricity can be differentiated in the market based on its method of generation (e.g., fossil
fuel, wind, solar). Many products' degree of commodification depends on the buyer's mentality
and means. For example, milk, eggs, and notebook paper are considered by many customers ascompletely undifferentiable and fungible; lowest price is the only deciding factor in the
purchasing choice. Other customers take into consideration other factors besides price, such as
environmental sustainability and animal welfare. To these customers, distinctions such asorganic-versus-not or cage-free-versus-not count toward differentiating brands of milk or eggs,
and percentage of recycled content or forestry council certification count toward differentiating
brands of notebook paper. Larger considerations can enter these equations, such as systemic
socioeconomic unfairness (as poor people point out, "sure, it's easy to buy the expensive foodwhen you've got plenty of money") and deception andauthentication(e.g., a brand may
greenwashits product and consumers lack practical ways to authenticate the claims).
commodity market A market in whichcommoditiesare traded. The mainterminal marketsin commodities are in London, New York,and Chicago, but in some commodities there are markets in the country of origin. Some commodities are dealt with at auctions (e.g.
tea), each lot being sold having been examined by dealers, but most dealers deal with goods that have been classified according to
established quality standards (seecertified stock). In these commodities bothactualsand futures (see
http://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Qualitative_datahttp://en.wikipedia.org/wiki/Qualitative_datahttp://en.wikipedia.org/wiki/Qualitative_datahttp://en.wikipedia.org/wiki/Product_differentiationhttp://en.wikipedia.org/wiki/Product_differentiationhttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Commodity#cite_note-0http://en.wikipedia.org/wiki/Commodity#cite_note-0http://en.wikipedia.org/wiki/Commodity#cite_note-0http://en.wikipedia.org/wiki/Fungibilityhttp://en.wikipedia.org/wiki/Fungibilityhttp://en.wikipedia.org/wiki/Fungibilityhttp://en.wikipedia.org/wiki/Petroleumhttp://en.wikipedia.org/wiki/Petroleumhttp://en.wikipedia.org/wiki/Petroleumhttp://en.wikipedia.org/wiki/Copperhttp://en.wikipedia.org/wiki/Copperhttp://en.wikipedia.org/wiki/Commodity#cite_note-1http://en.wikipedia.org/wiki/Commodity#cite_note-1http://en.wikipedia.org/wiki/Commodity#cite_note-1http://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Spot_markethttp://en.wikipedia.org/wiki/Spot_markethttp://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Agriculturehttp://en.wikipedia.org/wiki/Agriculturehttp://en.wikipedia.org/wiki/Agriculturehttp://en.wikipedia.org/wiki/Iron_orehttp://en.wikipedia.org/wiki/Iron_orehttp://en.wikipedia.org/wiki/Iron_orehttp://en.wikipedia.org/wiki/Crude_oilhttp://en.wikipedia.org/wiki/Crude_oilhttp://en.wikipedia.org/wiki/Crude_oilhttp://en.wikipedia.org/wiki/Coalhttp://en.wikipedia.org/wiki/Coalhttp://en.wikipedia.org/wiki/Coalhttp://en.wikipedia.org/wiki/Salthttp://en.wikipedia.org/wiki/Salthttp://en.wikipedia.org/wiki/Salthttp://en.wikipedia.org/wiki/Sugarhttp://en.wikipedia.org/wiki/Sugarhttp://en.wikipedia.org/wiki/Sugarhttp://en.wikipedia.org/wiki/Coffee_beanhttp://en.wikipedia.org/wiki/Coffee_beanhttp://en.wikipedia.org/wiki/Coffee_beanhttp://en.wikipedia.org/wiki/Soybeanhttp://en.wikipedia.org/wiki/Soybeanhttp://en.wikipedia.org/wiki/Soybeanhttp://en.wikipedia.org/wiki/Aluminiumhttp://en.wikipedia.org/wiki/Aluminiumhttp://en.wikipedia.org/wiki/Aluminiumhttp://en.wikipedia.org/wiki/Copperhttp://en.wikipedia.org/wiki/Copperhttp://en.wikipedia.org/wiki/Copperhttp://en.wikipedia.org/wiki/Ricehttp://en.wikipedia.org/wiki/Ricehttp://en.wikipedia.org/wiki/Ricehttp://en.wikipedia.org/wiki/Wheathttp://en.wikipedia.org/wiki/Wheathttp://en.wikipedia.org/wiki/Wheathttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Silverhttp://en.wikipedia.org/wiki/Silverhttp://en.wikipedia.org/wiki/Silverhttp://en.wikipedia.org/wiki/Palladiumhttp://en.wikipedia.org/wiki/Palladiumhttp://en.wikipedia.org/wiki/Palladiumhttp://en.wikipedia.org/wiki/Platinumhttp://en.wikipedia.org/wiki/Platinumhttp://en.wikipedia.org/wiki/Platinumhttp://en.wikipedia.org/wiki/Commoditizationhttp://en.wikipedia.org/wiki/Commoditizationhttp://en.wikipedia.org/wiki/Intellectual_capitalhttp://en.wikipedia.org/wiki/Intellectual_capitalhttp://en.wikipedia.org/wiki/Intellectual_capitalhttp://en.wikipedia.org/wiki/Profit_marginhttp://en.wikipedia.org/wiki/Profit_marginhttp://en.wikipedia.org/wiki/Profit_marginhttp://en.wikipedia.org/wiki/Markethttp://en.wiktionary.org/wiki/participationhttp://en.wiktionary.org/wiki/participationhttp://en.wiktionary.org/wiki/participationhttp://en.wikipedia.org/wiki/Generic_drughttp://en.wikipedia.org/wiki/Generic_drughttp://en.wikipedia.org/wiki/Generic_drughttp://en.wikipedia.org/wiki/Silicon_chiphttp://en.wikipedia.org/wiki/Silicon_chiphttp://en.wikipedia.org/wiki/Silicon_chiphttp://en.wikipedia.org/wiki/Silicon_chiphttp://en.wikipedia.org/wiki/Authenticationhttp://en.wikipedia.org/wiki/Authenticationhttp://en.wikipedia.org/wiki/Authenticationhttp://en.wikipedia.org/wiki/Greenwashinghttp://en.wikipedia.org/wiki/Greenwashinghttp://www.highbeam.com/doc/1O18-commodity.htmlhttp://www.highbeam.com/doc/1O18-commodity.htmlhttp://www.highbeam.com/doc/1O18-commodity.htmlhttp://www.highbeam.com/doc/1O18-terminalmarket.htmlhttp://www.highbeam.com/doc/1O18-terminalmarket.htmlhttp://www.highbeam.com/doc/1O18-terminalmarket.htmlhttp://www.highbeam.com/doc/1O18-certifiedstock.htmlhttp://www.highbeam.com/doc/1O18-certifiedstock.htmlhttp://www.highbeam.com/doc/1O18-certifiedstock.htmlhttp://www.highbeam.com/doc/1O18-actuals.htmlhttp://www.highbeam.com/doc/1O18-actuals.htmlhttp://www.highbeam.com/doc/1O18-actuals.htmlhttp://www.highbeam.com/doc/1O18-actuals.htmlhttp://www.highbeam.com/doc/1O18-certifiedstock.htmlhttp://www.highbeam.com/doc/1O18-terminalmarket.htmlhttp://www.highbeam.com/doc/1O18-commodity.htmlhttp://en.wikipedia.org/wiki/Greenwashinghttp://en.wikipedia.org/wiki/Authenticationhttp://en.wikipedia.org/wiki/Silicon_chiphttp://en.wikipedia.org/wiki/Silicon_chiphttp://en.wikipedia.org/wiki/Generic_drughttp://en.wiktionary.org/wiki/participationhttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Profit_marginhttp://en.wikipedia.org/wiki/Intellectual_capitalhttp://en.wikipedia.org/wiki/Commoditizationhttp://en.wikipedia.org/wiki/Platinumhttp://en.wikipedia.org/wiki/Palladiumhttp://en.wikipedia.org/wiki/Silverhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Wheathttp://en.wikipedia.org/wiki/Ricehttp://en.wikipedia.org/wiki/Copperhttp://en.wikipedia.org/wiki/Aluminiumhttp://en.wikipedia.org/wiki/Soybeanhttp://en.wikipedia.org/wiki/Coffee_beanhttp://en.wikipedia.org/wiki/Sugarhttp://en.wikipedia.org/wiki/Salthttp://en.wikipedia.org/wiki/Coalhttp://en.wikipedia.org/wiki/Crude_oilhttp://en.wikipedia.org/wiki/Iron_orehttp://en.wikipedia.org/wiki/Agriculturehttp://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Spot_markethttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Commodity#cite_note-1http://en.wikipedia.org/wiki/Copperhttp://en.wikipedia.org/wiki/Petroleumhttp://en.wikipedia.org/wiki/Fungibilityhttp://en.wikipedia.org/wiki/Commodity#cite_note-0http://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Product_differentiationhttp://en.wikipedia.org/wiki/Qualitative_datahttp://en.wikipedia.org/wiki/Good_(economics)8/3/2019 A Commodity is a Good for Which There is Demand
2/13
Commodity markets are markets where raw or primary products are exchanged. These rawcommodities are traded on regulatedcommodities exchanges, in which they are bought and soldin standardized contracts.
This article focuses on the history and current debates regarding globalcommoditymarkets. It
covers physical product (food, metals, electricity) markets but not the ways that services,including those of governments, nor investment, nor debt, can be seen as a commodity. Articles
onreinsurance markets,stock markets,bond marketsandcurrency marketscover those concernsseparately and in more depth. One focus of this article is the relationship between simple
commodity moneyand the more complex instruments offered in the commodity markets.
Commodity money ismoneywhosevaluecomes from acommodityout of which it is made. It
is objects that have value in themselves as well as for use as money.[1]
Examples of commodities that have been used asmediums of exchangeincludegold,silver,
copper,salt,peppercorns, large stones (such asRai stones), decoratedbelts,shells,alcohol,
cigarettes,cannabis,candy,barleyetc. These items were sometimes used in a metric of perceivedvaluein conjunction to one another, in various commodity valuation orprice systemeconomies.
[edit] Aspects
Commodity money is to be distinguished fromrepresentative moneywhich is a certificate ortoken which can be exchanged for the underlying commodity. But only as the trade is good for
that source and the product. A key feature of commodity money is that the value is directly
perceived by the users of this money, who recognize the utility or beauty of the tokens as they
would recognize the goods themselves. That is, the effect of holding a token for a barrel of oilmust be the same economically as actually having the barrel at hand. This thinking guides the
moderncommodity markets, although they use a sophisticated range offinancial instrumentsthat
are more than one-to-one representations of units of a given type of commodity.
Since payment by commodity generally provides a useful good, commodity money is similar tobarter, but is distinguishable from it in having a single recognized unit of exchange. (Radford
1945) described the establishment of commodity money inP.O.W camps
People left their surplus clothing, toilet requisites and food there until they were sold at a fixedprice in cigarettes. Only sales in cigarettes were accepted - there was no barter [...] Of food, the
shop carried small stocks for convenience; the capital was provided by a loan from the bulk store
of Red Cross cigarettes and repaid by a small commission taken on the first transactions. Thusthe cigarette attained its fullest currency status, and the market was almost completely unified.[2]
Radford documented the way that this 'cigarette currency' was subject toGresham's law,inflation, and especiallydeflation.
http://en.wikipedia.org/wiki/Commodities_exchangehttp://en.wikipedia.org/wiki/Commodities_exchangehttp://en.wikipedia.org/wiki/Commodities_exchangehttp://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Reinsurance_markethttp://en.wikipedia.org/wiki/Reinsurance_markethttp://en.wikipedia.org/wiki/Reinsurance_markethttp://en.wikipedia.org/wiki/Stock_markethttp://en.wikipedia.org/wiki/Stock_markethttp://en.wikipedia.org/wiki/Stock_markethttp://en.wikipedia.org/wiki/Bond_markethttp://en.wikipedia.org/wiki/Bond_markethttp://en.wikipedia.org/wiki/Bond_markethttp://en.wikipedia.org/wiki/Currency_markethttp://en.wikipedia.org/wiki/Currency_markethttp://en.wikipedia.org/wiki/Currency_markethttp://en.wikipedia.org/wiki/Commodity_moneyhttp://en.wikipedia.org/wiki/Commodity_moneyhttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Value_(economics)http://en.wikipedia.org/wiki/Value_(economics)http://en.wikipedia.org/wiki/Value_(economics)http://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Commodity_money#cite_note-0http://en.wikipedia.org/wiki/Commodity_money#cite_note-0http://en.wikipedia.org/wiki/Commodity_money#cite_note-0http://en.wikipedia.org/wiki/Medium_of_exchangehttp://en.wikipedia.org/wiki/Medium_of_exchangehttp://en.wikipedia.org/wiki/Medium_of_exchangehttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Silverhttp://en.wikipedia.org/wiki/Silverhttp://en.wikipedia.org/wiki/Silverhttp://en.wikipedia.org/wiki/Copperhttp://en.wikipedia.org/wiki/Copperhttp://en.wikipedia.org/wiki/Salthttp://en.wikipedia.org/wiki/Salthttp://en.wikipedia.org/wiki/Salthttp://en.wikipedia.org/wiki/Black_pepperhttp://en.wikipedia.org/wiki/Black_pepperhttp://en.wikipedia.org/wiki/Black_pepperhttp://en.wikipedia.org/wiki/Rai_stoneshttp://en.wikipedia.org/wiki/Rai_stoneshttp://en.wikipedia.org/wiki/Rai_stoneshttp://en.wikipedia.org/wiki/Belt_(clothing)http://en.wikipedia.org/wiki/Belt_(clothing)http://en.wikipedia.org/wiki/Belt_(clothing)http://en.wikipedia.org/wiki/Seashellhttp://en.wikipedia.org/wiki/Seashellhttp://en.wikipedia.org/wiki/Seashellhttp://en.wikipedia.org/wiki/Alcoholhttp://en.wikipedia.org/wiki/Alcoholhttp://en.wikipedia.org/wiki/Alcoholhttp://en.wikipedia.org/wiki/Cigarettehttp://en.wikipedia.org/wiki/Cigarettehttp://en.wikipedia.org/wiki/Cannabishttp://en.wikipedia.org/wiki/Cannabishttp://en.wikipedia.org/wiki/Cannabishttp://en.wikipedia.org/wiki/Candyhttp://en.wikipedia.org/wiki/Candyhttp://en.wikipedia.org/wiki/Candyhttp://en.wikipedia.org/wiki/Barleyhttp://en.wikipedia.org/wiki/Barleyhttp://en.wikipedia.org/wiki/Barleyhttp://en.wikipedia.org/wiki/Value_(economics)http://en.wikipedia.org/wiki/Value_(economics)http://en.wikipedia.org/wiki/Price_systemhttp://en.wikipedia.org/wiki/Price_systemhttp://en.wikipedia.org/wiki/Price_systemhttp://en.wikipedia.org/w/index.php?title=Commodity_money&action=edit§ion=1http://en.wikipedia.org/w/index.php?title=Commodity_money&action=edit§ion=1http://en.wikipedia.org/wiki/Representative_moneyhttp://en.wikipedia.org/wiki/Representative_moneyhttp://en.wikipedia.org/wiki/Representative_moneyhttp://en.wikipedia.org/wiki/Commodity_markethttp://en.wikipedia.org/wiki/Commodity_markethttp://en.wikipedia.org/wiki/Commodity_markethttp://en.wikipedia.org/wiki/Financial_instrumenthttp://en.wikipedia.org/wiki/Financial_instrumenthttp://en.wikipedia.org/wiki/Financial_instrumenthttp://en.wikipedia.org/wiki/Barterhttp://en.wikipedia.org/wiki/Barterhttp://en.wikipedia.org/wiki/Commodity_money#CITEREF_Radford_1945http://en.wikipedia.org/wiki/Commodity_money#CITEREF_Radford_1945http://en.wikipedia.org/wiki/Commodity_money#CITEREF_Radford_1945http://en.wikipedia.org/wiki/Commodity_money#CITEREF_Radford_1945http://en.wikipedia.org/wiki/Prisoner-of-war_camp#World_War_IIhttp://en.wikipedia.org/wiki/Prisoner-of-war_camp#World_War_IIhttp://en.wikipedia.org/wiki/Prisoner-of-war_camp#World_War_IIhttp://en.wikipedia.org/wiki/Commodity_money#cite_note-1http://en.wikipedia.org/wiki/Commodity_money#cite_note-1http://en.wikipedia.org/wiki/Commodity_money#cite_note-1http://en.wikipedia.org/wiki/Gresham%27s_lawhttp://en.wikipedia.org/wiki/Gresham%27s_lawhttp://en.wikipedia.org/wiki/Gresham%27s_lawhttp://en.wikipedia.org/wiki/Inflationhttp://en.wikipedia.org/wiki/Inflationhttp://en.wikipedia.org/wiki/Deflationhttp://en.wikipedia.org/wiki/Deflationhttp://en.wikipedia.org/wiki/Deflationhttp://en.wikipedia.org/wiki/Deflationhttp://en.wikipedia.org/wiki/Inflationhttp://en.wikipedia.org/wiki/Gresham%27s_lawhttp://en.wikipedia.org/wiki/Commodity_money#cite_note-1http://en.wikipedia.org/wiki/Prisoner-of-war_camp#World_War_IIhttp://en.wikipedia.org/wiki/Commodity_money#CITEREF_Radford_1945http://en.wikipedia.org/wiki/Commodity_money#CITEREF_Radford_1945http://en.wikipedia.org/wiki/Barterhttp://en.wikipedia.org/wiki/Financial_instrumenthttp://en.wikipedia.org/wiki/Commodity_markethttp://en.wikipedia.org/wiki/Representative_moneyhttp://en.wikipedia.org/w/index.php?title=Commodity_money&action=edit§ion=1http://en.wikipedia.org/wiki/Price_systemhttp://en.wikipedia.org/wiki/Value_(economics)http://en.wikipedia.org/wiki/Barleyhttp://en.wikipedia.org/wiki/Candyhttp://en.wikipedia.org/wiki/Cannabishttp://en.wikipedia.org/wiki/Cigarettehttp://en.wikipedia.org/wiki/Alcoholhttp://en.wikipedia.org/wiki/Seashellhttp://en.wikipedia.org/wiki/Belt_(clothing)http://en.wikipedia.org/wiki/Rai_stoneshttp://en.wikipedia.org/wiki/Black_pepperhttp://en.wikipedia.org/wiki/Salthttp://en.wikipedia.org/wiki/Copperhttp://en.wikipedia.org/wiki/Silverhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Medium_of_exchangehttp://en.wikipedia.org/wiki/Commodity_money#cite_note-0http://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Value_(economics)http://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Commodity_moneyhttp://en.wikipedia.org/wiki/Currency_markethttp://en.wikipedia.org/wiki/Bond_markethttp://en.wikipedia.org/wiki/Stock_markethttp://en.wikipedia.org/wiki/Reinsurance_markethttp://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Commodities_exchange8/3/2019 A Commodity is a Good for Which There is Demand
3/13
In another example, in U.S. prisons, after smoking was banned in about 2003, commodity money
has switched in many places to cans or foil pouches of mackerel fish fillets, which have a fairlystandard cost and are easy to store. These may be exchanged for many services in prisons where
personal possession of currency is prohibited.[3]
.
[edit] Historical significance
Commodities often come into being in situations where other forms of money are not availableor not trusted. Various commodities were used in pre-Revolutionary America including
wampum,maize, iron nails, beaver pelts, andtobacco. In post-war Germany, cigarettes became
used as a form of commodity money in some areas. Cigarettes are still used as a form of
commodity money in U.S. prisons (Lankenau 2001, p. 142 concludes that where jails don't banthem, the prison "gray market" creates a largely benign use of the cigarette as "currency").
TheFort Knoxgold repository long maintained by theUnited States, functioned as a theoreticalbacking for federally issued "gold certificates" to substitute for the gold. Between 1933 and 1970
(when the U.S. officially left the gold standard), oneU.S. dollarwas technically worth exactly1/35 of atroy ounce(889 mg) of gold. However, actual trade in gold bullion as aprecious metal
within the United States was banned after 1933, with the explicit purpose of preventing the"hoarding" of private gold during an economic depression period in which maximal circulation
of money was desired by influential economists. This was a fairly typical transition from
commodity to representative to fiat money, with people trading in other goods being forced totrade in gold, then to receivepaper moneythat purported to be as good as gold.
[edit] Metals
In situations where the commodity is metal, typicallygoldorsilver, a governmentmintwill
oftencoinmoney by placing a mark on the metal that serves as a guarantee of the weight andpurity of the metal. In doing so, the government will often impose a fee which is known asseigniorage.
The role of a mint and of coin differs between commodity money andfiat money. In situationswhere there is a commodity money, the coin retains its value if it is melted and physically
altered, while in a fiat money it does not. Usually in a fiat money the value drops if the coin is
converted to metal, but in a few cases the value of metals in fiat moneys have been allowed torise to values larger than the face value of the coin. In India, for example fiat Rupeesdisappeared
from the market after 2007 when their content of stainless steel became larger than the fiat or
face value of the coins.[4]
. In the U.S., the metal in pennies (mostly zinc since 1982) and the
metal in nickels (75% copper, 25% nickel) has a value close to (and at some times exceeding) thefiat face value of the coin.
[edit] Functions of commodity money
http://en.wikipedia.org/wiki/Commodity_money#cite_note-2http://en.wikipedia.org/wiki/Commodity_money#cite_note-2http://en.wikipedia.org/wiki/Commodity_money#cite_note-2http://en.wikipedia.org/w/index.php?title=Commodity_money&action=edit§ion=2http://en.wikipedia.org/w/index.php?title=Commodity_money&action=edit§ion=2http://en.wikipedia.org/w/index.php?title=Commodity_money&action=edit§ion=2http://en.wikipedia.org/wiki/Wampumhttp://en.wikipedia.org/wiki/Wampumhttp://en.wikipedia.org/wiki/Maizehttp://en.wikipedia.org/wiki/Maizehttp://en.wikipedia.org/wiki/Maizehttp://en.wikipedia.org/wiki/Tobaccohttp://en.wikipedia.org/wiki/Tobaccohttp://en.wikipedia.org/wiki/Tobaccohttp://en.wikipedia.org/wiki/Commodity_money#CITEREF_Lankenau_2001http://en.wikipedia.org/wiki/Commodity_money#CITEREF_Lankenau_2001http://en.wikipedia.org/wiki/Commodity_money#CITEREF_Lankenau_2001http://en.wikipedia.org/wiki/Fort_Knoxhttp://en.wikipedia.org/wiki/Fort_Knoxhttp://en.wikipedia.org/wiki/Fort_Knoxhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Troy_weighthttp://en.wikipedia.org/wiki/Troy_weighthttp://en.wikipedia.org/wiki/Troy_weighthttp://en.wikipedia.org/wiki/Precious_metalhttp://en.wikipedia.org/wiki/Precious_metalhttp://en.wikipedia.org/wiki/Precious_metalhttp://en.wikipedia.org/wiki/Paper_moneyhttp://en.wikipedia.org/wiki/Paper_moneyhttp://en.wikipedia.org/wiki/Paper_moneyhttp://en.wikipedia.org/w/index.php?title=Commodity_money&action=edit§ion=3http://en.wikipedia.org/w/index.php?title=Commodity_money&action=edit§ion=3http://en.wikipedia.org/w/index.php?title=Commodity_money&action=edit§ion=3http://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Silverhttp://en.wikipedia.org/wiki/Silverhttp://en.wikipedia.org/wiki/Silverhttp://en.wikipedia.org/wiki/Mint_(coin)http://en.wikipedia.org/wiki/Mint_(coin)http://en.wikipedia.org/wiki/Mint_(coin)http://en.wikipedia.org/wiki/Coinhttp://en.wikipedia.org/wiki/Coinhttp://en.wikipedia.org/wiki/Coinhttp://en.wikipedia.org/wiki/Seignioragehttp://en.wikipedia.org/wiki/Seignioragehttp://en.wikipedia.org/wiki/Fiat_moneyhttp://en.wikipedia.org/wiki/Fiat_moneyhttp://en.wikipedia.org/wiki/Fiat_moneyhttp://en.wikipedia.org/wiki/Rupeehttp://en.wikipedia.org/wiki/Rupeehttp://en.wikipedia.org/wiki/Rupeehttp://en.wikipedia.org/wiki/Commodity_money#cite_note-3http://en.wikipedia.org/wiki/Commodity_money#cite_note-3http://en.wikipedia.org/wiki/Commodity_money#cite_note-3http://en.wikipedia.org/w/index.php?title=Commodity_money&action=edit§ion=4http://en.wikipedia.org/w/index.php?title=Commodity_money&action=edit§ion=4http://en.wikipedia.org/w/index.php?title=Commodity_money&action=edit§ion=4http://en.wikipedia.org/wiki/Commodity_money#cite_note-3http://en.wikipedia.org/wiki/Rupeehttp://en.wikipedia.org/wiki/Fiat_moneyhttp://en.wikipedia.org/wiki/Seignioragehttp://en.wikipedia.org/wiki/Coinhttp://en.wikipedia.org/wiki/Mint_(coin)http://en.wikipedia.org/wiki/Silverhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/w/index.php?title=Commodity_money&action=edit§ion=3http://en.wikipedia.org/wiki/Paper_moneyhttp://en.wikipedia.org/wiki/Precious_metalhttp://en.wikipedia.org/wiki/Troy_weighthttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Fort_Knoxhttp://en.wikipedia.org/wiki/Commodity_money#CITEREF_Lankenau_2001http://en.wikipedia.org/wiki/Tobaccohttp://en.wikipedia.org/wiki/Maizehttp://en.wikipedia.org/wiki/Wampumhttp://en.wikipedia.org/w/index.php?title=Commodity_money&action=edit§ion=2http://en.wikipedia.org/wiki/Commodity_money#cite_note-28/3/2019 A Commodity is a Good for Which There is Demand
4/13
Japanese commodity money before the 8th century CE:arrowheads,ricegrains andgoldpowder.
This is the earliest form ofJapanese currency.
Although some commodity money (barley), has been used historically in relations of trade and
barter (Mesopotamiacirca 3000 BC.), it can be inconvenient to use as amedium of exchangeor
astandard of deferred paymentdue to transport and storage concerns, and eventual rancidity.
Gold or other metals are sometimes used in aprice systemas a store of perceived value, thatdoes not break down due to environmental deterioration, and can be easily stored (demurrage).
The use ofbarterlike methods using commodity money may date back to at least 100,000 yearsago. Trading inred ochreis attested inSwaziland, shell jewellery in the form of strung beads
also dates back to this period, and had the basic attributes needed of commodity money.[5]
To
organize production and to distribute goods and services among their populations, beforemarketeconomiesexisted, people relied on tradition, top-down command, or community cooperation.
Relations ofreciprocity, and/or redistribution, substituted for market exchange.[citation needed]
Thecity-statesofSumerdeveloped a trade and marketeconomybased originally on the
commodity money of theShekelwhich was a certain weight measure of barley, while the
Babyloniansand their city state neighbors later developed the earliest system ofeconomicsusinga metric of various commodities, that was fixed in a legal code.[6]
Several centuries after the invention of cuneiform, the use of writing expanded beyonddebt/payment certificates and inventory lists to codified amounts of commodity money being
used in contract law, such as buying property and payinglegalfines[7
Financial market
http://en.wikipedia.org/wiki/Arrowheadshttp://en.wikipedia.org/wiki/Arrowheadshttp://en.wikipedia.org/wiki/Arrowheadshttp://en.wikipedia.org/wiki/Ricehttp://en.wikipedia.org/wiki/Ricehttp://en.wikipedia.org/wiki/Ricehttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Japanese_currencyhttp://en.wikipedia.org/wiki/Japanese_currencyhttp://en.wikipedia.org/wiki/Japanese_currencyhttp://en.wikipedia.org/wiki/Barleyhttp://en.wikipedia.org/wiki/Barleyhttp://en.wikipedia.org/wiki/Barleyhttp://en.wikipedia.org/wiki/Mesopotamiahttp://en.wikipedia.org/wiki/Mesopotamiahttp://en.wikipedia.org/wiki/Mesopotamiahttp://en.wikipedia.org/wiki/Medium_of_exchangehttp://en.wikipedia.org/wiki/Medium_of_exchangehttp://en.wikipedia.org/wiki/Medium_of_exchangehttp://en.wikipedia.org/wiki/Standard_of_deferred_paymenthttp://en.wikipedia.org/wiki/Standard_of_deferred_paymenthttp://en.wikipedia.org/wiki/Standard_of_deferred_paymenthttp://en.wikipedia.org/wiki/Price_systemhttp://en.wikipedia.org/wiki/Price_systemhttp://en.wikipedia.org/wiki/Price_systemhttp://en.wikipedia.org/wiki/Demurrage_(currency)http://en.wikipedia.org/wiki/Demurrage_(currency)http://en.wikipedia.org/wiki/Demurrage_(currency)http://en.wikipedia.org/wiki/Barterhttp://en.wikipedia.org/wiki/Barterhttp://en.wikipedia.org/wiki/Barterhttp://en.wikipedia.org/wiki/Red_ochrehttp://en.wikipedia.org/wiki/Red_ochrehttp://en.wikipedia.org/wiki/Red_ochrehttp://en.wikipedia.org/wiki/Swazilandhttp://en.wikipedia.org/wiki/Swazilandhttp://en.wikipedia.org/wiki/Swazilandhttp://en.wikipedia.org/wiki/Commodity_money#cite_note-4http://en.wikipedia.org/wiki/Commodity_money#cite_note-4http://en.wikipedia.org/wiki/Commodity_money#cite_note-4http://en.wikipedia.org/wiki/Market_economieshttp://en.wikipedia.org/wiki/Market_economieshttp://en.wikipedia.org/wiki/Market_economieshttp://en.wikipedia.org/wiki/Market_economieshttp://en.wikipedia.org/wiki/Reciprocity_(cultural_anthropology)http://en.wikipedia.org/wiki/Reciprocity_(cultural_anthropology)http://en.wikipedia.org/wiki/Reciprocity_(cultural_anthropology)http://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/City-statehttp://en.wikipedia.org/wiki/City-statehttp://en.wikipedia.org/wiki/City-statehttp://en.wikipedia.org/wiki/Sumerhttp://en.wikipedia.org/wiki/Sumerhttp://en.wikipedia.org/wiki/Sumerhttp://en.wikipedia.org/wiki/Economyhttp://en.wikipedia.org/wiki/Economyhttp://en.wikipedia.org/wiki/Economyhttp://en.wikipedia.org/wiki/Shekelhttp://en.wikipedia.org/wiki/Shekelhttp://en.wikipedia.org/wiki/Shekelhttp://en.wikipedia.org/wiki/Babyloniahttp://en.wikipedia.org/wiki/Babyloniahttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Commodity_money#cite_note-yale2-5http://en.wikipedia.org/wiki/Commodity_money#cite_note-yale2-5http://en.wikipedia.org/wiki/Commodity_money#cite_note-yale2-5http://en.wikipedia.org/wiki/Legalhttp://en.wikipedia.org/wiki/Legalhttp://en.wikipedia.org/wiki/Legalhttp://en.wikipedia.org/wiki/Commodity_money#cite_note-Sheila-6http://en.wikipedia.org/wiki/Commodity_money#cite_note-Sheila-6http://en.wikipedia.org/wiki/Commodity_money#cite_note-Sheila-6http://en.wikipedia.org/wiki/File:Japan_commodity_money_before_the_8th_century.jpghttp://en.wikipedia.org/wiki/File:Japan_commodity_money_before_the_8th_century.jpghttp://en.wikipedia.org/wiki/File:Japan_commodity_money_before_the_8th_century.jpghttp://en.wikipedia.org/wiki/File:Japan_commodity_money_before_the_8th_century.jpghttp://en.wikipedia.org/wiki/Commodity_money#cite_note-Sheila-6http://en.wikipedia.org/wiki/Legalhttp://en.wikipedia.org/wiki/Commodity_money#cite_note-yale2-5http://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Babyloniahttp://en.wikipedia.org/wiki/Shekelhttp://en.wikipedia.org/wiki/Economyhttp://en.wikipedia.org/wiki/Sumerhttp://en.wikipedia.org/wiki/City-statehttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Reciprocity_(cultural_anthropology)http://en.wikipedia.org/wiki/Market_economieshttp://en.wikipedia.org/wiki/Market_economieshttp://en.wikipedia.org/wiki/Commodity_money#cite_note-4http://en.wikipedia.org/wiki/Swazilandhttp://en.wikipedia.org/wiki/Red_ochrehttp://en.wikipedia.org/wiki/Barterhttp://en.wikipedia.org/wiki/Demurrage_(currency)http://en.wikipedia.org/wiki/Price_systemhttp://en.wikipedia.org/wiki/Standard_of_deferred_paymenthttp://en.wikipedia.org/wiki/Medium_of_exchangehttp://en.wikipedia.org/wiki/Mesopotamiahttp://en.wikipedia.org/wiki/Barleyhttp://en.wikipedia.org/wiki/Japanese_currencyhttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Ricehttp://en.wikipedia.org/wiki/Arrowheads8/3/2019 A Commodity is a Good for Which There is Demand
5/13
Ineconomics, a financial market is a mechanism that allows people to buy and sell (trade)
financialsecurities(such as stocks and bonds),commodities(such as precious metals oragricultural goods), and otherfungibleitems of value at lowtransaction costsand at prices that
reflect theefficient-market hypothesis.
Both general markets (where many commodities are traded) and specialized markets (where onlyone commodity is traded) exist. Markets work by placing many interested buyers and sellers in
one "place", thus making it easier for them to find each other. An economy which reliesprimarily on interactions between buyers and sellers to allocate resources is known as amarket
economyin contrast either to acommand economyor to anon-market economysuch as agift
economy.
Infinance, financial markets facilitate:
The raising ofcapital(in thecapital markets)
The transfer ofrisk(in thederivatives markets)
International trade(in thecurrency markets)
and are used to match those who wantcapital to those who have it.
Typically a borrower issues areceiptto the lender promising to pay back the capital. These
receipts aresecuritieswhich may be freely bought or sold. In return for lending money to the
borrower, the lender will expect some compensation in the form ofinterestordividends.
Inmathematical finance, the concept of a financial market is defined in terms of acontinuous-
time Brownian motion stochastic process.
Commodities tradingCommodities exchanges usually tradefutures contractson commodities, such as trading
contracts to receive something, say corn, in a certain month. A farmer raising corn can sell a
future contract on his corn, which will not be harvested for several months, and guarantee the
price he will be paid when he delivers; a breakfast cereal producer buys the contract now andguarantees the price will not go up when it is delivered. This protects the farmer from price drops
and the buyer from price rises.
Speculators and investors also buy and sell the futures contracts in attempt to make a profit and
provideliquidityto the system. However, due to the leverage provided by the exchange to
traders those participating in commodity futures trading face substantial amounts of speculativerisk[1].
[edit] Commodities exchanges across the world
Main commodity exchanges worldwide:
http://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Trade_(financial_instrument)http://en.wikipedia.org/wiki/Trade_(financial_instrument)http://en.wikipedia.org/wiki/Trade_(financial_instrument)http://en.wikipedia.org/wiki/Securitieshttp://en.wikipedia.org/wiki/Securitieshttp://en.wikipedia.org/wiki/Securitieshttp://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Fungiblehttp://en.wikipedia.org/wiki/Fungiblehttp://en.wikipedia.org/wiki/Fungiblehttp://en.wikipedia.org/wiki/Transaction_costhttp://en.wikipedia.org/wiki/Transaction_costhttp://en.wikipedia.org/wiki/Transaction_costhttp://en.wikipedia.org/wiki/Efficient-market_hypothesishttp://en.wikipedia.org/wiki/Efficient-market_hypothesishttp://en.wikipedia.org/wiki/Efficient-market_hypothesishttp://en.wikipedia.org/wiki/Market_economyhttp://en.wikipedia.org/wiki/Market_economyhttp://en.wikipedia.org/wiki/Market_economyhttp://en.wikipedia.org/wiki/Market_economyhttp://en.wikipedia.org/wiki/Command_economyhttp://en.wikipedia.org/wiki/Command_economyhttp://en.wikipedia.org/wiki/Command_economyhttp://en.wikipedia.org/wiki/Market_economicshttp://en.wikipedia.org/wiki/Market_economicshttp://en.wikipedia.org/wiki/Market_economicshttp://en.wikipedia.org/wiki/Gift_economyhttp://en.wikipedia.org/wiki/Gift_economyhttp://en.wikipedia.org/wiki/Gift_economyhttp://en.wikipedia.org/wiki/Gift_economyhttp://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Capital_(economics)http://en.wikipedia.org/wiki/Capital_(economics)http://en.wikipedia.org/wiki/Capital_(economics)http://en.wikipedia.org/wiki/Capital_markethttp://en.wikipedia.org/wiki/Capital_markethttp://en.wikipedia.org/wiki/Capital_markethttp://en.wikipedia.org/wiki/Risk#Risk_in_financehttp://en.wikipedia.org/wiki/Risk#Risk_in_financehttp://en.wikipedia.org/wiki/Risk#Risk_in_financehttp://en.wikipedia.org/wiki/Derivatives_markethttp://en.wikipedia.org/wiki/Derivatives_markethttp://en.wikipedia.org/wiki/Derivatives_markethttp://en.wikipedia.org/wiki/International_tradehttp://en.wikipedia.org/wiki/International_tradehttp://en.wikipedia.org/wiki/Currency_markethttp://en.wikipedia.org/wiki/Currency_markethttp://en.wikipedia.org/wiki/Currency_markethttp://en.wikipedia.org/wiki/Receipthttp://en.wikipedia.org/wiki/Receipthttp://en.wikipedia.org/wiki/Receipthttp://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Interesthttp://en.wikipedia.org/wiki/Interesthttp://en.wikipedia.org/wiki/Interesthttp://en.wikipedia.org/wiki/Dividendshttp://en.wikipedia.org/wiki/Dividendshttp://en.wikipedia.org/wiki/Dividendshttp://en.wikipedia.org/wiki/Mathematical_financehttp://en.wikipedia.org/wiki/Mathematical_financehttp://en.wikipedia.org/wiki/Mathematical_financehttp://en.wikipedia.org/wiki/Brownian_Model_of_Financial_Marketshttp://en.wikipedia.org/wiki/Brownian_Model_of_Financial_Marketshttp://en.wikipedia.org/wiki/Brownian_Model_of_Financial_Marketshttp://en.wikipedia.org/wiki/Brownian_Model_of_Financial_Marketshttp://en.wikipedia.org/wiki/Futures_contracthttp://en.wikipedia.org/wiki/Futures_contracthttp://en.wikipedia.org/wiki/Futures_contracthttp://en.wikipedia.org/wiki/Liquidityhttp://en.wikipedia.org/wiki/Liquidityhttp://en.wikipedia.org/wiki/Liquidityhttp://en.wikipedia.org/wiki/Commodities_exchange#cite_note-0http://en.wikipedia.org/wiki/Commodities_exchange#cite_note-0http://en.wikipedia.org/wiki/Commodities_exchange#cite_note-0http://en.wikipedia.org/w/index.php?title=Commodities_exchange&action=edit§ion=2http://en.wikipedia.org/w/index.php?title=Commodities_exchange&action=edit§ion=2http://en.wikipedia.org/w/index.php?title=Commodities_exchange&action=edit§ion=2http://en.wikipedia.org/wiki/Commodities_exchange#cite_note-0http://en.wikipedia.org/wiki/Liquidityhttp://en.wikipedia.org/wiki/Futures_contracthttp://en.wikipedia.org/wiki/Brownian_Model_of_Financial_Marketshttp://en.wikipedia.org/wiki/Brownian_Model_of_Financial_Marketshttp://en.wikipedia.org/wiki/Mathematical_financehttp://en.wikipedia.org/wiki/Dividendshttp://en.wikipedia.org/wiki/Interesthttp://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Receipthttp://en.wikipedia.org/wiki/Currency_markethttp://en.wikipedia.org/wiki/International_tradehttp://en.wikipedia.org/wiki/Derivatives_markethttp://en.wikipedia.org/wiki/Risk#Risk_in_financehttp://en.wikipedia.org/wiki/Capital_markethttp://en.wikipedia.org/wiki/Capital_(economics)http://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Gift_economyhttp://en.wikipedia.org/wiki/Gift_economyhttp://en.wikipedia.org/wiki/Market_economicshttp://en.wikipedia.org/wiki/Command_economyhttp://en.wikipedia.org/wiki/Market_economyhttp://en.wikipedia.org/wiki/Market_economyhttp://en.wikipedia.org/wiki/Efficient-market_hypothesishttp://en.wikipedia.org/wiki/Transaction_costhttp://en.wikipedia.org/wiki/Fungiblehttp://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Securitieshttp://en.wikipedia.org/wiki/Trade_(financial_instrument)http://en.wikipedia.org/wiki/Economics8/3/2019 A Commodity is a Good for Which There is Demand
6/13
[edit] Africa
Exchange Abbreviation Location Product Types
Ethiopia Commodity
Exchange ECX
Addis Ababa,
EthiopiaAgricultural
Africa MercantileExchange
AfMX Nairobi,KenyaAgricultural,equities and energyproducts
[edit] Americas
Exchange Abbreviation Location Product Types
Brazilian Mercantile andFutures Exchange
BMF So Paulo,BrazilAgricultural, Biofuels,Precious Metals
Chicago Board of Trade(CME
Group)CBOT Chicago,US
Grains, Ethanol, Treasuries,
Equity Index, Metals
Chicago Mercantile Exchange(CME Group)
CME Chicago,USMeats, Currencies,Eurodollars, Equity Index
Chicago Climate Exchange CCX Chicago,US Emissions
HedgeStreetExchange California,US Energy, industrial Metals
Intercontinental Exchange ICEAtlanta, Georgia,
US
Energy, Emissions,
Agricultural, Biofuels
Integrated Nano-Science
Commodity Exchange INSCX United Kingdom Engineered nanomaterials
Kansas City Board of Trade KCBT Kansas City,US Agricultural
Memphis Cotton Exchange
Memphis,US AgriculturalMercado a Termino de BuenosAires
MATbaBuenos Aires,Argentina
Agricultural
Minneapolis Grain Exchange MGEX Minneapolis Agricultural
New York Mercantile
Exchange(CME Group)NYMEX New York,US
Energy, Precious Metals,
Industrial Metals
U.S. Futures Exchange USFE Chicago,US Energy
[edit] Asia
Exchange Abbreviation Location Product TypesBursa Malaysia MDEX Malaysia Biofuels
CambodianMercantile
Exchange
CMEXPhnom Penh,
Cambodia
Energy, Industrial Metals, Rubber, Precious
Metals, Agri Commodities.
Central Japan
CommodityNagoya,Japan Energy, Industrial Metals, Rubber
http://en.wikipedia.org/w/index.php?title=Commodities_exchange&action=edit§ion=3http://en.wikipedia.org/w/index.php?title=Commodities_exchange&action=edit§ion=3http://en.wikipedia.org/w/index.php?title=Commodities_exchange&action=edit§ion=3http://en.wikipedia.org/wiki/Ethiopia_Commodity_Exchangehttp://en.wikipedia.org/wiki/Ethiopia_Commodity_Exchangehttp://en.wikipedia.org/wiki/Ethiopia_Commodity_Exchangehttp://en.wikipedia.org/wiki/Addis_Ababahttp://en.wikipedia.org/wiki/Addis_Ababahttp://en.wikipedia.org/wiki/Africa_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Africa_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Africa_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Nairobihttp://en.wikipedia.org/wiki/Nairobihttp://en.wikipedia.org/wiki/Kenyahttp://en.wikipedia.org/wiki/Kenyahttp://en.wikipedia.org/wiki/Kenyahttp://en.wikipedia.org/w/index.php?title=Commodities_exchange&action=edit§ion=4http://en.wikipedia.org/w/index.php?title=Commodities_exchange&action=edit§ion=4http://en.wikipedia.org/w/index.php?title=Commodities_exchange&action=edit§ion=4http://en.wikipedia.org/wiki/Brazilian_Mercantile_and_Futures_Exchangehttp://en.wikipedia.org/wiki/Brazilian_Mercantile_and_Futures_Exchangehttp://en.wikipedia.org/wiki/Brazilian_Mercantile_and_Futures_Exchangehttp://en.wikipedia.org/wiki/S%C3%A3o_Paulohttp://en.wikipedia.org/wiki/S%C3%A3o_Paulohttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/Chicago_Board_of_Tradehttp://en.wikipedia.org/wiki/Chicago_Board_of_Tradehttp://en.wikipedia.org/wiki/CME_Grouphttp://en.wikipedia.org/wiki/CME_Grouphttp://en.wikipedia.org/wiki/CME_Grouphttp://en.wikipedia.org/wiki/CME_Grouphttp://en.wikipedia.org/wiki/Chicagohttp://en.wikipedia.org/wiki/Chicagohttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/Chicago_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Chicago_Mercantile_Exchangehttp://en.wikipedia.org/wiki/CME_Grouphttp://en.wikipedia.org/wiki/CME_Grouphttp://en.wikipedia.org/wiki/CME_Grouphttp://en.wikipedia.org/wiki/Chicagohttp://en.wikipedia.org/wiki/Chicagohttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/Chicago_Climate_Exchangehttp://en.wikipedia.org/wiki/Chicago_Climate_Exchangehttp://en.wikipedia.org/wiki/Chicagohttp://en.wikipedia.org/wiki/Chicagohttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/HedgeStreethttp://en.wikipedia.org/wiki/HedgeStreethttp://en.wikipedia.org/wiki/Californiahttp://en.wikipedia.org/wiki/Californiahttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/Intercontinental_Exchangehttp://en.wikipedia.org/wiki/Intercontinental_Exchangehttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/w/index.php?title=Integrated_Nano-Science_Commodity_Exchange&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Integrated_Nano-Science_Commodity_Exchange&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Integrated_Nano-Science_Commodity_Exchange&action=edit&redlink=1http://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Kansas_City_Board_of_Tradehttp://en.wikipedia.org/wiki/Kansas_City_Board_of_Tradehttp://en.wikipedia.org/wiki/Kansas_City,_Missourihttp://en.wikipedia.org/wiki/Kansas_City,_Missourihttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/Memphis_Cotton_Exchangehttp://en.wikipedia.org/wiki/Memphis_Cotton_Exchangehttp://en.wikipedia.org/wiki/Memphis,_Tennesseehttp://en.wikipedia.org/wiki/Memphis,_Tennesseehttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/Mercado_a_Termino_de_Buenos_Aireshttp://en.wikipedia.org/wiki/Mercado_a_Termino_de_Buenos_Aireshttp://en.wikipedia.org/wiki/Mercado_a_Termino_de_Buenos_Aireshttp://en.wikipedia.org/wiki/Argentinahttp://en.wikipedia.org/wiki/Argentinahttp://en.wikipedia.org/wiki/Minneapolis_Grain_Exchangehttp://en.wikipedia.org/wiki/Minneapolis_Grain_Exchangehttp://en.wikipedia.org/wiki/Minneapolis,_Minnesotahttp://en.wikipedia.org/wiki/Minneapolis,_Minnesotahttp://en.wikipedia.org/wiki/New_York_Mercantile_Exchangehttp://en.wikipedia.org/wiki/New_York_Mercantile_Exchangehttp://en.wikipedia.org/wiki/New_York_Mercantile_Exchangehttp://en.wikipedia.org/wiki/CME_Grouphttp://en.wikipedia.org/wiki/CME_Grouphttp://en.wikipedia.org/wiki/CME_Grouphttp://en.wikipedia.org/wiki/New_Yorkhttp://en.wikipedia.org/wiki/New_Yorkhttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/U.S._Futures_Exchangehttp://en.wikipedia.org/wiki/U.S._Futures_Exchangehttp://en.wikipedia.org/wiki/Chicagohttp://en.wikipedia.org/wiki/Chicagohttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/w/index.php?title=Commodities_exchange&action=edit§ion=5http://en.wikipedia.org/w/index.php?title=Commodities_exchange&action=edit§ion=5http://en.wikipedia.org/w/index.php?title=Commodities_exchange&action=edit§ion=5http://en.wikipedia.org/wiki/Bursa_Malaysiahttp://en.wikipedia.org/wiki/Bursa_Malaysiahttp://en.wikipedia.org/wiki/Malaysiahttp://en.wikipedia.org/wiki/Malaysiahttp://en.wikipedia.org/w/index.php?title=Cambodian_Mercantile_Exchange&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Cambodian_Mercantile_Exchange&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Cambodian_Mercantile_Exchange&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Cambodian_Mercantile_Exchange&action=edit&redlink=1http://en.wikipedia.org/wiki/Phnom_Penhhttp://en.wikipedia.org/wiki/Phnom_Penhhttp://en.wikipedia.org/wiki/Central_Japan_Commodity_Exchangehttp://en.wikipedia.org/wiki/Central_Japan_Commodity_Exchangehttp://en.wikipedia.org/wiki/Nagoyahttp://en.wikipedia.org/wiki/Nagoyahttp://en.wikipedia.org/wiki/Nagoyahttp://en.wikipedia.org/wiki/Central_Japan_Commodity_Exchangehttp://en.wikipedia.org/wiki/Central_Japan_Commodity_Exchangehttp://en.wikipedia.org/wiki/Phnom_Penhhttp://en.wikipedia.org/w/index.php?title=Cambodian_Mercantile_Exchange&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Cambodian_Mercantile_Exchange&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Cambodian_Mercantile_Exchange&action=edit&redlink=1http://en.wikipedia.org/wiki/Malaysiahttp://en.wikipedia.org/wiki/Bursa_Malaysiahttp://en.wikipedia.org/w/index.php?title=Commodities_exchange&action=edit§ion=5http://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/Chicagohttp://en.wikipedia.org/wiki/U.S._Futures_Exchangehttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/New_Yorkhttp://en.wikipedia.org/wiki/CME_Grouphttp://en.wikipedia.org/wiki/New_York_Mercantile_Exchangehttp://en.wikipedia.org/wiki/New_York_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Minneapolis,_Minnesotahttp://en.wikipedia.org/wiki/Minneapolis_Grain_Exchangehttp://en.wikipedia.org/wiki/Argentinahttp://en.wikipedia.org/wiki/Mercado_a_Termino_de_Buenos_Aireshttp://en.wikipedia.org/wiki/Mercado_a_Termino_de_Buenos_Aireshttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/Memphis,_Tennesseehttp://en.wikipedia.org/wiki/Memphis_Cotton_Exchangehttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/Kansas_City,_Missourihttp://en.wikipedia.org/wiki/Kansas_City_Board_of_Tradehttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/w/index.php?title=Integrated_Nano-Science_Commodity_Exchange&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Integrated_Nano-Science_Commodity_Exchange&action=edit&redlink=1http://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/Intercontinental_Exchangehttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/Californiahttp://en.wikipedia.org/wiki/HedgeStreethttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/Chicagohttp://en.wikipedia.org/wiki/Chicago_Climate_Exchangehttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/Chicagohttp://en.wikipedia.org/wiki/CME_Grouphttp://en.wikipedia.org/wiki/Chicago_Mercantile_Exchangehttp://en.wikipedia.org/wiki/UShttp://en.wikipedia.org/wiki/Chicagohttp://en.wikipedia.org/wiki/CME_Grouphttp://en.wikipedia.org/wiki/CME_Grouphttp://en.wikipedia.org/wiki/Chicago_Board_of_Tradehttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/S%C3%A3o_Paulohttp://en.wikipedia.org/wiki/Brazilian_Mercantile_and_Futures_Exchangehttp://en.wikipedia.org/wiki/Brazilian_Mercantile_and_Futures_Exchangehttp://en.wikipedia.org/w/index.php?title=Commodities_exchange&action=edit§ion=4http://en.wikipedia.org/wiki/Kenyahttp://en.wikipedia.org/wiki/Nairobihttp://en.wikipedia.org/wiki/Africa_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Africa_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Addis_Ababahttp://en.wikipedia.org/wiki/Ethiopia_Commodity_Exchangehttp://en.wikipedia.org/wiki/Ethiopia_Commodity_Exchangehttp://en.wikipedia.org/w/index.php?title=Commodities_exchange&action=edit§ion=38/3/2019 A Commodity is a Good for Which There is Demand
7/13
Exchange
Dalian
Commodity
Exchange
DCE Dalian,ChinaAgricultural, Plastics, Energy, IndustrialMetals, Bullions, Agri Commodities
Dubai Mercantile
Exchange DME Dubai
Energy
Dubai Gold &
CommoditiesExchange
DGCX Dubai Precious Metals
Hong Kong
Mercantile
Exchange
HKMEx Hong Kong Gold
Iranian oil bourse IOBKish Island,Iran
Oil, Gas, Petrochemicals
Kansai
CommoditiesExchange
KANEX Osaka,Japan Agricultural
Commodities &
Metal Exchange
Nepal Ltd.
COMEN Nepal Gold and Silver
Nepal DerivativeExchange
Limited
[NDEX]Kathmandu,
Nepal
Agricultural, Precious Metals, Base Metals,
Energy
Mercantile
Exchange Nepal
Limited
MEXKathmandu,
NepalAgricultural, Bullion, Base Metals, Energy
Nepal Spot
Exchange
Limited
NSEKathmandu,
NepalAgricultural, Bullion
Indian
Commodity
ExchangeLimited
ICEX India Energy, Precious Metals, Base Metals,
Agricultural
Multi Commodity
Exchange MCX India
Precious Metals, Metals, Energy,
Agricultural Products
National Multi-
CommodityExchange of India
Ltd
NMCE India Precious Metals, Metals, Agricultural
National
CommodityExchange
Limited
NCEL Pakistan Precious Metals, Agriculture
http://en.wikipedia.org/wiki/Central_Japan_Commodity_Exchangehttp://en.wikipedia.org/wiki/Central_Japan_Commodity_Exchangehttp://en.wikipedia.org/wiki/Dalian_Commodity_Exchangehttp://en.wikipedia.org/wiki/Dalian_Commodity_Exchangehttp://en.wikipedia.org/wiki/Dalian_Commodity_Exchangehttp://en.wikipedia.org/wiki/Dalian_Commodity_Exchangehttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Dubai_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Dubai_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Dubai_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Dubaihttp://en.wikipedia.org/wiki/Dubaihttp://en.wikipedia.org/w/index.php?title=Dubai_Gold_%26_Commodities_Exchange&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Dubai_Gold_%26_Commodities_Exchange&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Dubai_Gold_%26_Commodities_Exchange&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Dubai_Gold_%26_Commodities_Exchange&action=edit&redlink=1http://en.wikipedia.org/wiki/Dubaihttp://en.wikipedia.org/wiki/Dubaihttp://en.wikipedia.org/wiki/Hong_Kong_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Hong_Kong_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Hong_Kong_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Hong_Kong_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Iranian_oil_boursehttp://en.wikipedia.org/wiki/Iranian_oil_boursehttp://en.wikipedia.org/wiki/Kish_Islandhttp://en.wikipedia.org/wiki/Kish_Islandhttp://en.wikipedia.org/wiki/Iranhttp://en.wikipedia.org/wiki/Iranhttp://en.wikipedia.org/wiki/Kansai_Commodities_Exchangehttp://en.wikipedia.org/wiki/Kansai_Commodities_Exchangehttp://en.wikipedia.org/wiki/Kansai_Commodities_Exchangehttp://en.wikipedia.org/wiki/Kansai_Commodities_Exchangehttp://en.wikipedia.org/wiki/Osakahttp://en.wikipedia.org/wiki/Osakahttp://en.wikipedia.org/w/index.php?title=Commodities_%26_Metal_Exchange_Nepal_Ltd.&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Commodities_%26_Metal_Exchange_Nepal_Ltd.&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Commodities_%26_Metal_Exchange_Nepal_Ltd.&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Commodities_%26_Metal_Exchange_Nepal_Ltd.&action=edit&redlink=1http://en.wikipedia.org/wiki/Nepalhttp://en.wikipedia.org/wiki/Nepalhttp://en.wikipedia.org/wiki/Nepal_Derivative_Exchange_Limitedhttp://en.wikipedia.org/wiki/Nepal_Derivative_Exchange_Limitedhttp://en.wikipedia.org/wiki/Nepal_Derivative_Exchange_Limitedhttp://en.wikipedia.org/wiki/Nepal_Derivative_Exchange_Limitedhttp://en.wikipedia.org/wiki/Kathmanduhttp://en.wikipedia.org/wiki/Kathmanduhttp://en.wikipedia.org/wiki/Nepalhttp://en.wikipedia.org/wiki/Nepalhttp://en.wikipedia.org/wiki/Mercantile_Exchange_Nepal_Limitedhttp://en.wikipedia.org/wiki/Mercantile_Exchange_Nepal_Limitedhttp://en.wikipedia.org/wiki/Mercantile_Exchange_Nepal_Limitedhttp://en.wikipedia.org/wiki/Mercantile_Exchange_Nepal_Limitedhttp://en.wikipedia.org/wiki/Kathmanduhttp://en.wikipedia.org/wiki/Kathmanduhttp://en.wikipedia.org/wiki/Nepalhttp://en.wikipedia.org/wiki/Nepalhttp://en.wikipedia.org/wiki/Nepal_Spot_Exchange_Limitedhttp://en.wikipedia.org/wiki/Nepal_Spot_Exchange_Limitedhttp://en.wikipedia.org/wiki/Nepal_Spot_Exchange_Limitedhttp://en.wikipedia.org/wiki/Nepal_Spot_Exchange_Limitedhttp://en.wikipedia.org/wiki/Kathmanduhttp://en.wikipedia.org/wiki/Kathmanduhttp://en.wikipedia.org/wiki/Nepalhttp://en.wikipedia.org/wiki/Nepalhttp://en.wikipedia.org/w/index.php?title=Indian_Commodity_Exchange_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Indian_Commodity_Exchange_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Indian_Commodity_Exchange_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Indian_Commodity_Exchange_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Indian_Commodity_Exchange_Limited&action=edit&redlink=1http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Multi_Commodity_Exchangehttp://en.wikipedia.org/wiki/Multi_Commodity_Exchangehttp://en.wikipedia.org/wiki/Multi_Commodity_Exchangehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/w/index.php?title=National_Multi-Commodity_Exchange_of_India_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=National_Multi-Commodity_Exchange_of_India_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=National_Multi-Commodity_Exchange_of_India_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=National_Multi-Commodity_Exchange_of_India_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=National_Multi-Commodity_Exchange_of_India_Ltd&action=edit&redlink=1http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/National_Commodity_Exchange_Limitedhttp://en.wikipedia.org/wiki/National_Commodity_Exchange_Limitedhttp://en.wikipedia.org/wiki/National_Commodity_Exchange_Limitedhttp://en.wikipedia.org/wiki/National_Commodity_Exchange_Limitedhttp://en.wikipedia.org/wiki/National_Commodity_Exchange_Limitedhttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/National_Commodity_Exchange_Limitedhttp://en.wikipedia.org/wiki/National_Commodity_Exchange_Limitedhttp://en.wikipedia.org/wiki/National_Commodity_Exchange_Limitedhttp://en.wikipedia.org/wiki/National_Commodity_Exchange_Limitedhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/w/index.php?title=National_Multi-Commodity_Exchange_of_India_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=National_Multi-Commodity_Exchange_of_India_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=National_Multi-Commodity_Exchange_of_India_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=National_Multi-Commodity_Exchange_of_India_Ltd&action=edit&redlink=1http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Multi_Commodity_Exchangehttp://en.wikipedia.org/wiki/Multi_Commodity_Exchangehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/w/index.php?title=Indian_Commodity_Exchange_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Indian_Commodity_Exchange_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Indian_Commodity_Exchange_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Indian_Commodity_Exchange_Limited&action=edit&redlink=1http://en.wikipedia.org/wiki/Nepalhttp://en.wikipedia.org/wiki/Kathmanduhttp://en.wikipedia.org/wiki/Nepal_Spot_Exchange_Limitedhttp://en.wikipedia.org/wiki/Nepal_Spot_Exchange_Limitedhttp://en.wikipedia.org/wiki/Nepal_Spot_Exchange_Limitedhttp://en.wikipedia.org/wiki/Nepalhttp://en.wikipedia.org/wiki/Kathmanduhttp://en.wikipedia.org/wiki/Mercantile_Exchange_Nepal_Limitedhttp://en.wikipedia.org/wiki/Mercantile_Exchange_Nepal_Limitedhttp://en.wikipedia.org/wiki/Mercantile_Exchange_Nepal_Limitedhttp://en.wikipedia.org/wiki/Nepalhttp://en.wikipedia.org/wiki/Kathmanduhttp://en.wikipedia.org/wiki/Nepal_Derivative_Exchange_Limitedhttp://en.wikipedia.org/wiki/Nepal_Derivative_Exchange_Limitedhttp://en.wikipedia.org/wiki/Nepal_Derivative_Exchange_Limitedhttp://en.wikipedia.org/wiki/Nepalhttp://en.wikipedia.org/w/index.php?title=Commodities_%26_Metal_Exchange_Nepal_Ltd.&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Commodities_%26_Metal_Exchange_Nepal_Ltd.&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Commodities_%26_Metal_Exchange_Nepal_Ltd.&action=edit&redlink=1http://en.wikipedia.org/wiki/Osakahttp://en.wikipedia.org/wiki/Kansai_Commodities_Exchangehttp://en.wikipedia.org/wiki/Kansai_Commodities_Exchangehttp://en.wikipedia.org/wiki/Kansai_Commodities_Exchangehttp://en.wikipedia.org/wiki/Iranhttp://en.wikipedia.org/wiki/Kish_Islandhttp://en.wikipedia.org/wiki/Iranian_oil_boursehttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Hong_Kong_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Hong_Kong_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Hong_Kong_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Dubaihttp://en.wikipedia.org/w/index.php?title=Dubai_Gold_%26_Commodities_Exchange&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Dubai_Gold_%26_Commodities_Exchange&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Dubai_Gold_%26_Commodities_Exchange&action=edit&redlink=1http://en.wikipedia.org/wiki/Dubaihttp://en.wikipedia.org/wiki/Dubai_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Dubai_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Dalian_Commodity_Exchangehttp://en.wikipedia.org/wiki/Dalian_Commodity_Exchangehttp://en.wikipedia.org/wiki/Dalian_Commodity_Exchangehttp://en.wikipedia.org/wiki/Central_Japan_Commodity_Exchange8/3/2019 A Commodity is a Good for Which There is Demand
8/13
Bhatinda Om &Oil Exchange
Ltd.
BOOE India Agricultural
Karachi
PreciousMetals,
AgriculturalNational
Commodity andDerivatives
Exchange
NCDEX India All
Shanghai Futures
Exchange Shanghai Industrial metals, Fuel Oil, Rubber
SingaporeCommodity
Exchange
SICOM Singapore Agricultural, Rubber
SingaporeMercantile
Exchange
SMX Singapore
Futures & Options contracts in PreciousMetals such as physically-delivered Gold,
Base Metals, Agriculture Commodities,
Energy such as WTI and Brent denominated
in Euro, Currencies such as Euro-US DollarContract, Commodity Indices
Tokyo
Commodity
Exchange
TOCOM Tokyo,JapanEnergy, Precious Metals, Industrial Metals,
Agricultural
Tokyo Grain
Exchange TGE Tokyo,Japan Agricultural
Zhengzhou
CommodityExchange
CZCEZhengzhou,
ChinaAgricultural
Buon Ma Thuot
Coffee ExchangeCenter
BCEC
Buon Ma
Thuot,Vietnam
Coffee
[edit] Europe
Exchange Abbreviation Location Product Types
APX-ENDEX APX-ENDEX
Amsterdam,theNetherlands
Energy
Commodity Exchange
Bratislava, JSC CEB Bratislava,Slovakia
Emissions, Agricultural,
Diamonds
Climex CLIMEXAmsterdam,the
NetherlandsEmissions
NYSE Liffe Europe Agricultural
http://en.wikipedia.org/w/index.php?title=Bhatinda_Om_%26_Oil_Exchange_Ltd.&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Bhatinda_Om_%26_Oil_Exchange_Ltd.&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Bhatinda_Om_%26_Oil_Exchange_Ltd.&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Bhatinda_Om_%26_Oil_Exchange_Ltd.&action=edit&redlink=1http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/National_Commodity_and_Derivatives_Exchangehttp://en.wikipedia.org/wiki/National_Commodity_and_Derivatives_Exchangehttp://en.wikipedia.org/wiki/National_Commodity_and_Derivatives_Exchangehttp://en.wikipedia.org/wiki/National_Commodity_and_Derivatives_Exchangehttp://en.wikipedia.org/wiki/National_Commodity_and_Derivatives_Exchangehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Shanghai_Futures_Exchangehttp://en.wikipedia.org/wiki/Shanghai_Futures_Exchangehttp://en.wikipedia.org/wiki/Shanghai_Futures_Exchangehttp://en.wikipedia.org/wiki/Shanghaihttp://en.wikipedia.org/wiki/Shanghaihttp://en.wikipedia.org/w/index.php?title=Singapore_Commodity_Exchange&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Singapore_Commodity_Exchange&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Singapore_Commodity_Exchange&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Singapore_Commodity_Exchange&action=edit&redlink=1http://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Singapore_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Singapore_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Singapore_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Singapore_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Tokyo_Commodity_Exchangehttp://en.wikipedia.org/wiki/Tokyo_Commodity_Exchangehttp://en.wikipedia.org/wiki/Tokyo_Commodity_Exchangehttp://en.wikipedia.org/wiki/Tokyo_Commodity_Exchangehttp://en.wikipedia.org/wiki/Tokyohttp://en.wikipedia.org/wiki/Tokyohttp://en.wikipedia.org/w/index.php?title=Tokyo_Grain_Exchange&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Tokyo_Grain_Exchange&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Tokyo_Grain_Exchange&action=edit&redlink=1http://en.wikipedia.org/wiki/Tokyohttp://en.wikipedia.org/wiki/Tokyohttp://en.wikipedia.org/wiki/Zhengzhou_Commodity_Exchangehttp://en.wikipedia.org/wiki/Zhengzhou_Commodity_Exchangehttp://en.wikipedia.org/wiki/Zhengzhou_Commodity_Exchangehttp://en.wikipedia.org/wiki/Zhengzhou_Commodity_Exchangehttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/w/index.php?title=Buon_Ma_Thuot_Coffee_Exchange_Center&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Buon_Ma_Thuot_Coffee_Exchange_Center&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Buon_Ma_Thuot_Coffee_Exchange_Center&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Buon_Ma_Thuot_Coffee_Exchange_Center&action=edit&redlink=1http://en.wikipedia.org/wiki/Vietnamhttp://en.wikipedia.org/wiki/Vietnamhttp://en.wikipedia.org/w/index.php?title=Commodities_exchange&action=edit§ion=6http://en.wikipedia.org/w/index.php?title=Commodities_exchange&action=edit§ion=6http://en.wikipedia.org/w/index.php?title=Commodities_exchange&action=edit§ion=6http://en.wikipedia.org/wiki/APX-ENDEXhttp://en.wikipedia.org/wiki/APX-ENDEXhttp://en.wikipedia.org/wiki/Amsterdamhttp://en.wikipedia.org/wiki/Amsterdamhttp://en.wikipedia.org/wiki/The_Netherlandshttp://en.wikipedia.org/wiki/The_Netherlandshttp://en.wikipedia.org/wiki/The_Netherlandshttp://en.wikipedia.org/wiki/The_Netherlandshttp://en.wikipedia.org/wiki/Commodity_Exchange_Bratislava,_JSChttp://en.wikipedia.org/wiki/Commodity_Exchange_Bratislava,_JSChttp://en.wikipedia.org/wiki/Commodity_Exchange_Bratislava,_JSChttp://en.wikipedia.org/wiki/Bratislavahttp://en.wikipedia.org/wiki/Bratislavahttp://en.wikipedia.org/wiki/Slovakiahttp://en.wikipedia.org/wiki/Slovakiahttp://en.wikipedia.org/wiki/Slovakiahttp://en.wikipedia.org/w/index.php?title=Climex&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Climex&action=edit&redlink=1http://en.wikipedia.org/wiki/Amsterdamhttp://en.wikipedia.org/wiki/Amsterdamhttp://en.wikipedia.org/wiki/The_Netherlandshttp://en.wikipedia.org/wiki/The_Netherlandshttp://en.wikipedia.org/wiki/The_Netherlandshttp://en.wikipedia.org/wiki/The_Netherlandshttp://en.wikipedia.org/wiki/NYSE_Liffehttp://en.wikipedia.org/wiki/NYSE_Liffehttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/NYSE_Liffehttp://en.wikipedia.org/wiki/The_Netherlandshttp://en.wikipedia.org/wiki/The_Netherlandshttp://en.wikipedia.org/wiki/Amsterdamhttp://en.wikipedia.org/w/index.php?title=Climex&action=edit&redlink=1http://en.wikipedia.org/wiki/Slovakiahttp://en.wikipedia.org/wiki/Bratislavahttp://en.wikipedia.org/wiki/Commodity_Exchange_Bratislava,_JSChttp://en.wikipedia.org/wiki/Commodity_Exchange_Bratislava,_JSChttp://en.wikipedia.org/wiki/The_Netherlandshttp://en.wikipedia.org/wiki/The_Netherlandshttp://en.wikipedia.org/wiki/Amsterdamhttp://en.wikipedia.org/wiki/APX-ENDEXhttp://en.wikipedia.org/w/index.php?title=Commodities_exchange&action=edit§ion=6http://en.wikipedia.org/wiki/Vietnamhttp://en.wikipedia.org/w/index.php?title=Buon_Ma_Thuot_Coffee_Exchange_Center&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Buon_Ma_Thuot_Coffee_Exchange_Center&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Buon_Ma_Thuot_Coffee_Exchange_Center&action=edit&redlink=1http://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Zhengzhou_Commodity_Exchangehttp://en.wikipedia.org/wiki/Zhengzhou_Commodity_Exchangehttp://en.wikipedia.org/wiki/Zhengzhou_Commodity_Exchangehttp://en.wikipedia.org/wiki/Tokyohttp://en.wikipedia.org/w/index.php?title=Tokyo_Grain_Exchange&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Tokyo_Grain_Exchange&action=edit&redlink=1http://en.wikipedia.org/wiki/Tokyohttp://en.wikipedia.org/wiki/Tokyo_Commodity_Exchangehttp://en.wikipedia.org/wiki/Tokyo_Commodity_Exchangehttp://en.wikipedia.org/wiki/Tokyo_Commodity_Exchangehttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Singapore_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Singapore_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Singapore_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/w/index.php?title=Singapore_Commodity_Exchange&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Singapore_Commodity_Exchange&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Singapore_Commodity_Exchange&action=edit&redlink=1http://en.wikipedia.org/wiki/Shanghaihttp://en.wikipedia.org/wiki/Shanghai_Futures_Exchangehttp://en.wikipedia.org/wiki/Shanghai_Futures_Exchangehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/National_Commodity_and_Derivatives_Exchangehttp://en.wikipedia.org/wiki/National_Commodity_and_Derivatives_Exchangehttp://en.wikipedia.org/wiki/National_Commodity_and_Derivatives_Exchangehttp://en.wikipedia.org/wiki/National_Commodity_and_Derivatives_Exchangehttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/w/index.php?title=Bhatinda_Om_%26_Oil_Exchange_Ltd.&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Bhatinda_Om_%26_Oil_Exchange_Ltd.&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Bhatinda_Om_%26_Oil_Exchange_Ltd.&action=edit&redlink=18/3/2019 A Commodity is a Good for Which There is Demand
9/13
European Climate Exchange ECX Europe Emissions
Energy Exchange Austria EXAA Vienna, AustriaElectricity, Emission
Allowances
London Metal Exchange LME London, UK Industrial Metals, Plastics
Risk Management Exchange
RMXHannover,Deutschland Agricultural
European Energy Exchange EEX Leipzig, Germany Energy, Emissions
[edit] Oceania
Exchange Abbreviation Location Product Types
Australian SecuritiesExchange
ASXSydney,Australia
Agricultural, Electricity, Thermal Coal& Natural Gas
Commodity exchanges, or futures exchanges, are, like stock exchanges, membership
organizations. Their mission is to provide a suitable place where members trade
commodities (futures) or options on futures in a controlled, orderly manner. The
exchange itself is not a principal to any futures transaction, nor does it trade for its own
account. Except for developing, publishing, and enforcing trading rules, including the
establishment of daily price limits to ensure fair and equal treatment for all market
participants, the exchange does nothing to determine prevailing prices in the market.
The first organized commodity exchange in the United States was the Chicago Board of
Trade (CBOT), founded April 3, 1848. When first established, the CBOT was a
centralized cash market formed in response to the need for a central marketplace that
would bring together large numbers of buyers and sellers; thus providing liquidity, as
well as bringing traders together in a place that provided rules for ethical trading
practices and reliable standards of weights and measures. Soon after the founding of the
exchange, grain brokers began trading in "cash forward contracts" in order to assure
buyers a source of supply and sellers the opportunity to sell 12 months a year. As use ofcash forward contracts escalated, futures contracts evolved.
Generally, membership on an exchange is individual, and only members may buy and
sell futures and options on the exchange trading floor. Administration of the day-to-day
operations of the exchange is handled by a paid staff. Members make the ultimate
http://en.wikipedia.org/wiki/European_Climate_Exchangehttp://en.wikipedia.org/wiki/European_Climate_Exchangehttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Energy_Exchange_Austriahttp://en.wikipedia.org/wiki/Energy_Exchange_Austriahttp://en.wikipedia.org/wiki/Viennahttp://en.wikipedia.org/wiki/Viennahttp://en.wikipedia.org/wiki/London_Metal_Exchangehttp://en.wikipedia.org/wiki/London_Metal_Exchangehttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Risk_Management_Exchangehttp://en.wikipedia.org/wiki/Risk_Management_Exchangehttp://en.wikipedia.org/wiki/Hannoverhttp://en.wikipedia.org/wiki/Hannoverhttp://en.wikipedia.org/wiki/European_Energy_Exchangehttp://en.wikipedia.org/wiki/European_Energy_Exchangehttp://en.wikipedia.org/wiki/Leipzighttp://en.wikipedia.org/wiki/Leipzighttp://en.wikipedia.org/w/index.php?title=Commodities_exchange&action=edit§ion=7http://en.wikipedia.org/w/index.php?title=Commodities_exchange&action=edit§ion=7http://en.wikipedia.org/w/index.php?title=Commodities_exchange&action=edit§ion=7http://en.wikipedia.org/wiki/Australian_Securities_Exchangehttp://en.wikipedia.org/wiki/Australian_Securities_Exchangehttp://en.wikipedia.org/wiki/Australian_Securities_Exchangehttp://en.wikipedia.org/wiki/Sydneyhttp://en.wikipedia.org/wiki/Sydneyhttp://en.wikipedia.org/wiki/Sydneyhttp://en.wikipedia.org/wiki/Australian_Securities_Exchangehttp://en.wikipedia.org/wiki/Australian_Securities_Exchangehttp://en.wikipedia.org/w/index.php?title=Commodities_exchange&action=edit§ion=7http://en.wikipedia.org/wiki/Leipzighttp://en.wikipedia.org/wiki/European_Energy_Exchangehttp://en.wikipedia.org/wiki/Hannoverhttp://en.wikipedia.org/wiki/Risk_Management_Exchangehttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/London_Metal_Exchangehttp://en.wikipedia.org/wiki/Viennahttp://en.wikipedia.org/wiki/Energy_Exchange_Austriahttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/European_Climate_Exchange8/3/2019 A Commodity is a Good for Which There is Demand
10/13
decisions, however, first by committee approval, then by passage by the board of
directors or board of trustees. Administrative decisions are subject to full membership
vote.
The heart of the exchange is the exchange trading floor, where a specific area, known as
a pit or ring, is designated for the trading of each commodity. Bids (propositions to buy
a specific quantity of a commodity at a stated price) and offers (propositions to sell a
specific quantity of a commodity at a stated price) are made by open outcry. As each
transaction is completed in the pit, a pit reporter records it; this information is
immediately displayed on the trading floor quotation board and also appears on
computer screens in brokerage offices and trading centers worldwide. Each trade is also
recorded by the participating member on trading cards; each entry shows the amount
bought or sold, with whom the trade was made, the price, and the trading bracket (time
period) in which the trade was made. These cards enable each member to recheck his
trades, as every trade must be resolved before the start of trading the following day.
The United States hosts five of world's largest top ten exchanges by number of contracts
traded. The Chicago Board of Trade (CBOT) is the world's largest exchange, with over
281 million contracts traded in 1998,40 percent of which were futures on U.S. Treasury
bonds. Other major U.S. exchanges include, in descending order by volume, the Chicago
Mercantile Exchange (CME), the Chicago Board Options Exchange (CBOE), AMEX
Commodities, and the New York Mercantile Exchange (NYMEX). The top two U.S.
exchanges represent almost 80 percent of U.S. trading volume. Major international
exchanges include the London International Financial Futures and Options Exchange
(LIFFE), the world's second-largest; Brazil's Bolsa de Mercadorias & Futuros
Answer these questions.Do you think gold prices will go up further?
Are you sure that crude oil prices are going to fall?
8/3/2019 A Commodity is a Good for Which There is Demand
11/13
Have you heard that the soya crop this year is bad and will result in soya prices going up?
If you believe that these predictions have a good chance of coming true and are willing to bet some
money on them, you could try your hand at playing the commodity futures market.
InHow to trade in Futures, we spoke about stock futures. Here we talk about commodity futures.
The commodity markets have changed a lot from the poky, little hole-in-the-wall trading offices in narrow
streets next to crowded markets where traditional dhoti-clad merchants used to trade.
Brand new commodities exchanges---the main ones areNCDEXandMCX---have been set up and these
are fully computerised.
More and more stock brokers are setting up commodity brokerages as well, and trading volumes in
commodity futures is widely predicted to rival the volume of derivative transactions (futures and options)
on the stock exchanges.
What's more, you can also trade online.
Why commodities trading?
Well, let's suppose you want to buy gold because you believe that the price of gold will rise.
You could then buy gold ingots, store them, wait for them to go up in price, and then sell them at a profit.
But, you have to be sure that the gold you buy is pure, you have to find a place to store it, you have to
provide the security, transport it to vault and other such hassles.
A far better way to invest in gold would be to buy gold futures from the commodities exchange.
How do you do that?
When you buy a Gold Futures contract, you undertake to do three things.
1. Buy the amount of gold specified in the contract.
2. Buy it at the price specified in the contract.
3. Buy it on the expiry of the contract. This could be after one month, two months, three months and so
on. Of course, if you sell the Gold Futures contract before it expires, then you don't have to worry aboutactually buying the gold.
Let's say you buy the Gold Future contract at say Rs 7,200 per 10 gm.
Your hunch comes true and the gold prices rally to Rs 8,000 per 10 gm.
You can sell the Gold Futures any time before expiry of the contract.
http://www.rediff.com/getahead/2006/jan/12future.htmhttp://www.rediff.com/getahead/2006/jan/12future.htmhttp://www.rediff.com/getahead/2006/jan/12future.htmhttp://www.ncdex.com/http://www.ncdex.com/http://www.ncdex.com/http://www.mcxindia.com/http://www.mcxindia.com/http://www.mcxindia.com/http://www.mcxindia.com/http://www.ncdex.com/http://www.rediff.com/getahead/2006/jan/12future.htm8/3/2019 A Commodity is a Good for Which There is Demand
12/13
Gold and other commodity futures prices are quoted on the commodity exchanges in exactly the same
way in which stock prices or stock futures prices are quoted on a daily basis in the stock markets.
How it works
Just like stock futures (Read How to trade in Futuresto understand how futures work).
When you buy a Futures, you don't have to pay the entire amount, just a fixed percentage of the cost.
This is known as the margin.
Let's say you are buying a Gold Futures contract. The minimum contract size for a gold future is 100 gms.
100 gms of gold may be worth Rs 72,000.
The margin for gold set by MCX is 3.5%. So you only end up paying Rs 2,520.
The low margin means that you can buy futures representing a large amount of gold by paying only a
fraction of the price.
So you bought the Gold Futures contract when it was Rs 72,000 per 100 gms.
The next day, the price of gold rose to Rs 73,000 per 100 gms.
Rs 1,000 (Rs 73,000 Rs 72,000) will be credited to your account.
The following day, the price dips to Rs 72,500.
Rs 500 will get debited from your account (Rs 73,000 - Rs 72,500).
What you need to know
Compared to stocks, trading in commodities is much cheaper, because margins are much lower than in
stock futures.
Brokerage is low for commodity futures. It ranges from 0.05% to 0.12%.
Because of this, commodity futures are a speculator's paradise.
If you are a hard-core trader who follows thetechnicalcharts and do not really care what you trade, and if
you are nimble and savvy, then commodity futures could be another asset class that you would be
interested in.
The advantages in this line is that there are no balance sheets, no complicated financial statements----all
you have to do is follow the supply and demand position of the commodities you trade in very closely.
Go onto the commodities trading exchange -NCDEXandMCX- to see which commodities are offered for
trading, their contract size and other criteria. You will have to get hold of a commodities broker but that
should not be a problem. There are lots of brokers that offer commodity trading these days.
http://www.rediff.com/getahead/2006/jan/12future.htmhttp://www.rediff.com/getahead/2006/jan/12future.htmhttp://www.rediff.com/getahead/tech.htmhttp://www.rediff.com/getahead/tech.htmhttp://www.rediff.com/getahead/tech.htmhttp://www.ncdex.com/http://www.ncdex.com/http://www.ncdex.com/http://www.mcxindia.com/http://www.mcxindia.com/http://www.mcxindia.com/http://www.mcxindia.com/http://www.ncdex.com/http://www.rediff.com/getahead/tech.htmhttp://www.rediff.com/getahead/2006/jan/12future.htm8/3/2019 A Commodity is a Good for Which There is Demand
13/13
But, it would be wise to avoid commodity trading if you are a rookie. A better move would be to initially
trade in stock futures before opting for commodity futures.
Sulagna Chakravarty