Commodities

A bulk good traded on an exchange or cash market is a commodity. We have food grains, gold, silver, oil, and the being traded in the commodities markets. A basket of commodities constitutes a commodities index. This index has a different weight for each commodity and its performance is a decisive factor in a number of commodity derivatives. It seems that from now on trading would be possible in small amounts. This would attract retail investors. Already commodities mutual funds are finding their takers, it would not be long before commodities would be sold in equities, just the way the securities are sold. We can expect a dramatic increase in transactions in the commodities exchanges like NCDEX (national commodities and derivatives exchange)