Commodity

A commodity refers to raw materials or physical goods like metals, grains, oil, and cotton, essential in manufacturing consumer products. It also includes financial products such as currencies or stock indexes, widely traded in markets for industrial and consumer use. 

Related Terms

Circuit Breaker

A circuit breaker is a regulatory measure that halts trading across an index or market to prevent panic selling during drastic price declines. It helps control volatility, giving investors time to assess market conditions and avoid impulsive decisions during market turmoil.

Cash Market

A cash market, also known as a spot market, is where assets, goods, or securities are bought and sold with immediate settlement at the spot price. Stock exchanges like NSE and BSE are examples of cash markets, unlike futures markets where settlement occurs later.

Cash Flow 

Cash flow refers to the net amount of money moving in and out of a business or individual’s finances. Positive cash flow indicates more income than expenses, while negative cash flow signals higher expenses. It’s crucial for assessing liquidity and overall financial health.

Commodity Exchange

A commodity exchange is a regulated marketplace where standardized commodity contracts and related investment products are traded. It enforces rules for trading. Initially focused on agricultural products in the 19th century, modern exchanges now involve a broader range of commodities and derivatives.

Commodity spread/straddles

A commodity straddle is an options trading strategy where a trader buys both call and put options with the same strike price and expiration date. It profits from significant price movement in either direction, provided the gains exceed the premium paid for the options.

Common Stock 

0

Account Opening
Charges*

₹50000 Worth Stocks With Just ₹10000