𝗪𝗵𝗮𝘁 𝗶𝘀 𝗖𝗼𝗺𝗺𝗼𝗱𝗶𝘁𝘆 ?

A commodity is a basic good or raw material in commerce that individuals or institutions buy and sell. Commodities are often the building blocks for more complex goods and services. Commodity trading is an essential part of the financial market that provides investors the opportunity to rule out market volatility and make profits. Indian market offers a wide variety of commodities for trading, which are classified as precious metal, base metal, energy and agro-based commodities. Generally, commodities are extracted, grown, produced and traded in large enough quantities to support liquid and mostly efficient global trading markets. These markets provide a transparent way for commodity producers, consumers and financial traders to transact business.

𝗪𝗵𝘆 𝗖𝗵𝗼𝗼𝘀𝗲 𝗨𝘀 ?

Safetrade Consultancy is the insured and bonded investment company which offers top class commodity service and provides the scope of interchangeable with other commodities at the same type. Commodities are most often used as inputs in the production of other goods or services. Manned with expert professional this company offers investors the great opportunity to exchange their products and get the valuable price of their purchase and sell.

𝗕𝗲𝗻𝗲𝗳𝗶𝘁𝘀 𝗢𝗳 𝗖𝗼𝗺𝗺𝗼𝗱𝗶𝘁𝘆 𝗙𝘂𝘁𝘂𝗿𝗲𝘀 𝗠𝗮𝗿𝗸𝗲𝘁:

Price Discovery: Based on inputs regarding specific market information, buyers and sellers conduct trading at futures exchanges. This results into continuous price discovery mechanism.
Hedging: It is strategy of managing price risk that is inherent in spot market by taking an equal but opposite position in the futures market to protect their business from adverse price change.
Import- Export competitiveness: The exporters can hedge their price risk and improve their competitiveness by making use of futures market. A majority of traders which are involved in physical trade internationally intend to buy forwards. The existence of futures market allows the exporters to hedge their proposed purchase by temporarily substituting for actual purchase till the time is ripe to buy in physical market.
Portfolio Diversification: Commodity offers at another investment options which is largely negatively correlated with equity and currency and thus could offer great portfolio diversification.