Commodities future trading is a global phenomenon and offers huge potential to market participants for both profit taking on small price fluctuations as well as also to hedgers looking at managing price risk on account of price fluctuations.
In India there are two main online commodities exchanges Viz. National Commodity & Derivatives Exchange Ltd. (NCDEX) & Multi Commodities Exchange of India Ltd. (MCX).
The encouraging feature of online commodities trading is that it offers a large number of agro commodities to trade in along with both bullion i.e. Gold & Silver. There is a huge potential of more commodities being added to the list of existing commodities.
Traders can hedge their positions in various commodities with reasonable margin and lower expenses. The most traded commodities on online trading system are: Guar seeds, Silver, Sugar, Guar Gum, Gold Mustard Oil, Chana, Caster Seed, Turmeric, Wheat, Black Pepper, Refind Soya Oil, Soya Bean Seed, Mustard Seeds, Jute, Turmeric, Crude and Palm oil, rubber, refined Soya oil, turmeric, sugar & yellow peas etc.
In view of the situation given above there is a tremendous Scope & opportunities to trade in commodities at online trading exchanges.