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Thursday 24 November 2011

Points to Consider before Dealing with Commodity Market.

What is Commodity Markets? Commodity Market is the market where primary and raw products are exchanged. These raw commodities are traded on controlled commodities exchange. The modern commodity market came from trading of agricultural products.

In this post we are pointing out some of the well-known important questionnaire or points which will assist you a lot during dealing in commodity futures.

1.) Why one should take part in commodity market & Does it make any effect if not participated?

2.) How much one should bear risk and hold his/her position in market?

3.) One should read the commodity contract fully and understood its implementation of different parameters on his/her position before participation in commodity market.

4.) Read and understand the contract, after that you would able to find out your contract is how much flexible.

5.) If you want to exit at early stage by some reason, then what was your exit cost?

6.) How much you have reliable information providing source regarding the commodity market you wish to participate.

7.) Study historical and seasonal price movement of the product, you wish to participate in present or future.

8.) Does product on exchange serve will fulfill your requirements for which you are trading?

For more information regarding this just go through www.ncdex.com/Knowledge/DOs_DONTs.aspx

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