Historically, Commodities helped us to diversify our portfolio from Equity, Real Estate, FD Etc.,It acted as a greater risk management tool against many investment avenues and to hedge the inflation.
ONLINE COMMODITY TRADING
An easier and reliable way to trade commodities. It helps us to reduce counter party risk with guaranteed settlement. It gives leverage to trade in different basket of commodities with price discovered at internation level. Of Course, Online commodity trading makes provision to make profit even when price of commodities comes down.
PARTICIPANTS OF COMMODITY TRADING
In commodities, Hedgers are people who have direct/physical expose to the commodities/spot market wants to manage the price risk by hedging in online futures market. Example Jewellers,Bullion dealers, Manufacturers, Traders,etc.
Speculators/traders are people who wants to use the price direction of an asset, here it is commodity. They take high risk to earn high returns by simply predicting the price direction.
Arbitrageurs are people who bang on low risk low return investment/trading solution. They try to use the price difference between spot abd futures market, two different national exchange or international exchange.