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| Commodity
futures trading |
The
difference between futures trading and commodity futures
trading is that in equity futures the underlying asset
is the equity share of any company whereas in commodity
futures the underlying asset is the commodity itself.
Commodity Futures trading results in transparent and
fair price discovery on account of large scale participation
and reflects views and expectations of wider section
of people related to that commodities.
In Commodities Futures Trading, the producers, traders
and processors, exporters/importers get an online platform
through MCX for price risk management. It provides a
platform for producers to hedge their positions according
to their view of the prices.
In India presently, commodity futures trading is permitted
in 41 commodities. The commodities in which futures
trading is allowed are listed below. They are: pepper
(domestic and international), turmeric, gur, castorseed,
hessian, jute, sacking, cotton, potato, castoroil (international),
soyabean (oil and cake), kapas, RBD palmalein, sugar
and tea. There are 18 commodity exchanges in India.
Futures trading in wheat and rice is banned .But government
is examining futures trading in onion, rubber, chillies,
linseed, gram and bullion. |
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