A commodity market facilitates trading in various commodities. The two types of markets in India are Spot market and Futures market. In Spot markets, the commodity trade happens immediately, in exchange for cash or other commodities. In Futures markets, buyers and sellers trade a predetermined amount of a commodity at a specific price on a specific date in the future.
Value Bull Insights presence and experienced staff for delivery and settlement process simplify the commodity investing experience. We are a trading-cum-clearing member of all major commodity exchanges of India. Value Bull Insights also offers all commodity-related services ranging from arbitrage and hedging services to broking.
A futures contract is a standardized legal agreement to buy/sell an asset (like commodities, financial instruments, currencies) at a predetermined price at a specific future date. These contracts are traded on a futures exchange and used by hedgers to manage price risk, and speculators to bet on price changes. Futures contracts detail the quantity, quality, and delivery method of the asset. Seller’s profit from a downtrend in the market, while investors can stand to earn a profit from price inflation.
An options contract is a type of derivatives contract that gives the buyer of the contract the right, but not the obligation, to buy or sell a certain asset at a predetermined value, called the strike price, within a specified time period. The asset could be a stock, a commodity, a currency, or other financial instruments. The key elements in an options contract are the underlying asset, the strike price, and the expiration date. The contract also specifies whether it's a call or a put option.