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Agricultural commodity trading
01:28 Mins Read
This video explains tradings in agricultural commodities
Trading in stocks is one way to participate in the markets. But what if you want to diversify your portfolio and engage in active trading?
Well, in that case, there are many options available to you.
And one such alternative is trading in agricultural commodities.
Agricultural commodities include products like sugar, wheat, rice, soybean, corn, etc.
In India, the National Commodity & Derivatives Exchange (NCDEX) is a commodities exchange that focuses primarily on agricultural commodities. So, as a trader, how do you go about trading in agricultural commodities?
The answer lies in agricultural futures contracts.
These are derivatives that have agricultural products as the underlying asset.
Agricultural commodity trading gives you two key benefits.
Firstly, it helps diversify your portfolio, so your risk is distributed.
Secondly, it can be used for hedging and speculation.
Like agri commodities, you can also trade in natural gas.
Head to the next chapter for the details.