Articles

Commodity markets have been around for several years now. However, it was only in 2003 that the regulators permitted exchange-traded mechanism. 

Agri commodity trading is one of the major attractions of the commodity market. Those who are keen to meet their long-term financial goals are particularly interested in agri commodity trading.

The foreign exchange market, also known as the forex market, is a global marketplace for trading in currencies. 

For many years there was a close association between equity markets and commodity markets. But unlike gold, equity and debt that retail investors are comfortable with, investing in commodities is not very common in India. To encourage investment in commodities, the Securities and Exchange Board of India (SEBI) has notified guidelines on mutual funds investment in commodity derivatives. Investors now have the option to include commodities in their portfolios that come with the advantage of being managed by professionals.

Exchange rates and what they mean

$1=₹74

Isn’t this the most common conversion we all have seen?

This conversion basically tells us that the worth of 1 U.S Dollar is equivalent to 74 Indian Rupees.

But where did this conversion come from? How do we arrive at this?

Read on to find out.

Currency derivatives are a type of futures and options contract traded on a formalized exchange market (for example, the National Stock Exchange of India, NSE). As a standardized contract, currency derivatives have fixed lot sizes and expiration dates, thus involving minimal counterparty risks. Both futures and options contracts for currency derivatives are margin-based and follow the rules and regulations of the intermediary clearinghouse. Click here for an introduction to currency derivatives.