Commodities are uniform and one individual or portion serves the same purpose as any other. An ounce of gold, a barrel of oil, a bushel of wheat. In every case, one is pretty much like another. It makes little difference to most of those buying commodities whether they receive this ounce of gold or that one. Observe there are some differences. Because of shipping costs, differences in composition, and so forth, some oil does sell for a different price than that from another source. Texas crude and North Sea oil are close enough for many purposes, but they trade on different markets and have different prices. The List of exchanges in India are: Bhatinda Om & Oil Exchange Ltd., Batinda., The Bombay Commodity Exchange Ltd. Mumbai, The Rajkot Seeds oil & Bullion Merchants` Association Ltd, The Meerut Agro Commodities Exchange Co. Ltd., Meerut, Ahmedabad Commodity Exchange Ltd., and many more.
Commodities can be traded on either spot markets, or in the form of futures.
Spot markets are those in which the commodity is traded immediately in exchange for cash or some other good. You go to the local jewelry store and buy an ounce of gold. That's a spot trade. You give the jeweler several hundred dollars in cash, he gives you an ounce of gold, usually in the form of a coin, 'on the spot'.
In the form of futures (or options), what is traded is not the goods itself, but a contract to buy or sell the commodity for a certain price by a stated date in the future. Hence the name.
The few majors in commodity exchanges are:
MCX(Multi Commodity Exchange of India Ltd.): MCX presents futures trading defined in terms of type of contracts offered in 58 commodities, from various market segments including energy, bullion, iron and non-iron metals, oil seeds, and other agricultural commodities. It is the worlds first and fore most also one and only company acquired ISO 27001:2005 certification.
National Commodity & Derivatives Exchange Limited (NCDEX): It is a private limited company which has obtained Certificate for Commencement of Business in Mat 2003 and is online commodity exchange based in India.
In India there are many companies and agencies for commodity trading tips, they are also known as commodity tips provider. They provide tips in commodity market on the basis of technical analysis and fundamental analysis. Now a days many techniques are used for the generation of calls in commodity market such as by the help of chart technique, candle stick technique etc. But the best technique i ever found is technical analysis.
