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What explains the difference between the stock market and the commodity market?

Stock market, as the name explains deals with the stocks/shares of a company floated at a stock exchange.Commodity markets, deals with commodities such as Oil, Gold, Silver, Grain, Coffee, Cotton and so on.In both the markets, the stocks or commodities are traded at their respective exchanges.


Discuss the function of SEBI?

SEBI regulates the business that happens in the Indian stock exchanges and other securities markets in India.


What are the key differences between ETFs and ETCs and how do they impact investment strategies?

ETFs (Exchange-Traded Funds) are investment funds that track an index or a basket of assets and are traded on stock exchanges like individual stocks. ETCs (Exchange-Traded Commodities) are similar but track the price of a specific commodity or a group of commodities. The key differences between ETFs and ETCs lie in their underlying assets - ETFs track a broader range of assets, while ETCs focus on commodities. This impacts investment strategies as ETFs provide diversification across various assets, reducing risk, while ETCs are more focused on the performance of specific commodities, which can be more volatile. Investors need to consider their risk tolerance, investment goals, and market conditions when choosing between ETFs and ETCs to align with their investment strategies effectively.


How can I purchase cobalt?

You can purchase cobalt through various methods, such as buying it from metal suppliers, commodity exchanges, or online platforms specializing in metal trading. Make sure to research the current market prices and quality standards before making a purchase.


Why is oil bought in dollars?

Oil is bought in dollars because it is a commodity. All commidities in the US are bought in dollars. This is because it's then easier to trade them --- the exchange determines the currency. US exchanges choose dollars, the Hang Sin trades in yen. The values of a currency used on an exchange can affect a commmodities market as well as other market forces. Commodite traders in the US tade worldwide on different exchanges and different currencies. in some cases a trader can make as much off currency fluctuations as they do off the commodity depending on what happens in the world and on which exchange they sell the commodity. Oil for example can change hands several times as a tanker heads to a port or it may go to a different port and a different buyer. Oil traders will often park a tanker and store the oil awaiting better currency conditions.

Related Questions

Who regulates commodity exchanges in trading in agricultural metal and other commodities?

CFTC


Which of these agencies regulates commodity exchanges and trading in agricultural metal and other commodities?

commodities futures trading commission


Which regulates commodity exchanges and trading in agricultural metal and other commodities?

The US Commodity Futures Trading Commission.


Who Regulates commodity exchanges and trading in agricultural metal and other commodities?

CFTC... Commodities Futures Trading Commission


What of these agencies regulates commodity exchanges and trading in agricultural metal and other commodities?

The Commodity Futures Trading Commission (CFTC) is the primary agency that regulates commodity exchanges and trading in agricultural metals and other commodities in the United States. It oversees the futures and options markets to ensure fair practices, protect market participants, and prevent fraud. Additionally, the CFTC works to promote competitive and financially sound markets.


Where could one Trade or exchange commodities?

Commodity exchanges or markets are the most common means of trading commodities such as precious metals, agricultural products, and energy. Stock exchanges tend to have listings for commodities trading.


What is a National Commodity Market and What is a Multi Commodity Market After this... What is a National - Multi Commodity Market and how are these three different?

Nothing. All are same, they all are shouting that we are "National level" commodity exchange anc can trade in multiple commodities. (I guess you must be refering Indian commodity exchanges in this question)All the three are authorized exchanges where investors can trade in commodities. All three have a national presence and an established electronic trading system. All the three exchanges facilitate trade in multiple commodities ranging from precious metals like gold and silver to raw agricultural products.


Where is it possible to learn about the commodity market?

Commodity markets are markets where raw or primary products are exchanged. These raw commodities are traded on regulated commodities exchanges, in which they are bought and sold in standardized contracts.


Why commodity stock's earning is extremely price sensitive?

What do you mean by commodity stock? Do you mean a manufacturing company's stock or do you mean an ETF that invests in commodities? Commodities aren't stocks, they are bought and sold on commodity exchanges, usually in futures contracts.


What are commodity trading charts used for?

Commodity trading charts are used for raw or primary products are being exchanged. These raw commodities are traded on regulated commodities exchanges, in which they are bought and sold in standardized contracts.


What are the different types of commodity exchange?

Commodity exchanges can be categorized into several types based on the nature of the commodities traded. The primary types include agricultural exchanges, which deal with crops and livestock; metal exchanges, focusing on precious and industrial metals; and energy exchanges, which trade in crude oil, natural gas, and other energy resources. Additionally, there are financial exchanges that trade in commodity-based financial instruments, such as futures and options. Each type serves distinct market needs and facilitates price discovery and risk management for participants.


What has the author Jerry W Markham written?

Jerry W. Markham has written: 'Commodities regulation' -- subject(s): Law and legislation, Commodity exchanges, Criminal provisions, Commodity futures 'The history of commodity futures trading and its regulation' -- subject(s): History, Commodity exchanges, Commodity futures, Law and legislation