InvestorQ : Are the terms and terminologies in commodity trading the same as equities and F&O or are they different?
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Are the terms and terminologies in commodity trading the same as equities and F&O or are they different?

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2 years ago
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What do we understand by the basic lingo or jargon of commodity markets? It includes the way you place an order, the way there is margining done and the way you actually go out and trade in the market. In the commodity market there is speculation, which is pure trading on spreads. There is also hedging where corporates manage risk by hedging using futures. It is important for beginners to know the language that used in commodity trading. The language level is one of the difficult areas for traders. When you familiar with the language, it provides you lots of knowledge about commodity, commodity tips, increasing number of market concepts and change nature of economic transactions. You need to understand what other commodity traders are doing and the technical terms pertaining to commodities. You can find that in the website of NCDEX or MCX which carry detailed tutorials on this subject.

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