Commodity market is a place where transaction of business occurs between all kinds of commodities. Initially only agriculture commodities were traded in the commodity market. But with the advancement of technology and industrialization, globalization commodities have crossed the barriers and now it allows all kinds of commodities traded. The gradual evolution of commodity market in India has been of great significance for the country's economic prosperity.

Indian commodity market includes two big benchmarks

Multi Commodity Exchange and

National Commodity and Derivative Exchange. MCX ie Multi Commodity Exchange includes bullion, metals and energy commodities. NCDEX ie National Commodity and Derivative Exchange with allows investors to trade in agriculture commodities. Multi Commodity Exchange of India Limited in Mumbai, is also an independent exchange recognized by the Government of India. National Commodity & Derivatives Exchange Limited located in Mumbai is a public limited company.

Commodity trading is done on certain principles: First is that trading must be done on standard products only. Second principle is that commodity trading takes place through future contracts. Like any other investment commodity trading do involves risk. The chance to limit that risk comes with experience and knowledge of the various markets.

Some suggestions to trade in commodity market that a trader must follow are:

• Define certain strict limits to define your damage.
• To start trading wait for the appropriate time.
• Dont change your way of reaction toward trading as we can see that markets trade in a same direction for a long duration of time.
• Last but not the least select a qualified consultant from a good advisory and follow his advice for trading. Judge them on the basis of their reputation and the accuracy the provide on their tips.
• And also do not change your advisor on a slightest damage as the stock market is a highly volatile place and your advisor or consultant are the only one's who can help you in the worse condition.

As compared to other markets in the last ten years, commodity market has performed relatively better than other markets like bonds, equity or currency. However, the participation in future trading in Indian commodity market is very low as compared to other countries. Commodity trading includes: gold, silver, lead, nickel, zinc, aluminium, copper, crude oil, natural gas, menthol, soybean, guar seed, turmeric, cumin seed, palm sugar, gram, mustard seed and more.

It is advised to get commodity trading tips and commodity trading news from some stock advisory firm which provides accurate tips. They have data about the market which is based on research by using various technical tools & experience.

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