The Reality Of The Commodity Market – Busting The Myths

Myth 1: Commodity derivatives are not meant for the common man

When you read in the context of financial markets, agricultural commodities may sound complicated and unfamiliar. In reality, this conversation is about items found in the kitchen like Jeera, Urad Dal, Coffee, and Metals like Gold, Silver, and Steel.

Derivative means something derived. What we see on the exchange derives its value from using the same items we see around us.

As a thumb rule for trading – trade what you understand – so agri commodity derivatives are surely meant for retail. They are not only asset backed but also provide great portfolio diversification benefits