Wednesday, August 29, 2012

What are the benefits of commodity trading


a. Price discovery from commodity market will aid farmers, exporters, importers manufactures and the government about the buy/sell decisions.

b. To producers: he can get the idea of the price likely to prevail at a future point of time which help him to select the commodity which best suits him

c. To consumer: he can get idea of price regarding which commodity will be available at which price

d. Hedging in commodity market help to reduce the risk  to industries, exporters, importers and all the participants in this market

e. Creates high liquidity in the market

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