SOME BASIC FORCES WHICH LEADS THE COMMODITIES MARKET

Commodity exchange market is the market in real sense. From the beginning of social relation among the human in history this type of trading started between the two types of persons one is called buyers and other is called sellers. In this market people trade in commodities and no concept of currency prevails. One person provides his commodity to the second person and in exchange first person receives another commodity from second person. This trade is done on some standers. This basic concept of commodity trading market of ancient times is still prevailing in the modern commodities trading markets. The people have to trade their commodities with the others commodities without the intervention of money.

To understand the basic forces which lead the commodity market following division is made in the form of problems and benefits of commodity market. This division of favorable and against factors is given in the following paragraphs to understand the commodity market easily.
Problems faced by traders in commodities market
           Cost of carry
           Cost of insurance
           Cost of storage
           Perish-ability of goods  
When a trader went to trade his goods in commodity market he has to face some problems during the process of trading in commodity market. Few are discussed here. First of all he has to face the cost of carrying his commodity to the market. If you have to trade with money this type of cost does not occur and traders don’t have to think about this problem. Moreover during transportation there can be any kind of damage occur. To avoid suck risk trader have to insure his commodity with some good insurance company.

In addition to that cost of storage is inevitable in trading under the system of commodity market. The reason is that there can be time between arrival of commodity to the market and the departure of traded products to the buyer. Therefore during that time commodities must be stored on safe and suitable place. This thing also generates an expense called cost of storage. Perish-ability of goods also create some problem especially when there prevails some idle time between the arrival of goods to the market and departure of goods to the buyer. Sometime goods are more perishable while others are less perishable however the risk of getting the commodity spoil exists.    

Benefits of commodity market
As mention in the introductory paragraph commodity market is the oldest way of trading in human history. There are number of benefits in trading the commodities rather than sale purchase through money. In the following paragraphs few benefits are given:

           Low effect of economic rescission's
           Availability of commodity on the spot
           Low risk of loss
           Natural way of trade
Commodity market bears some advantages over other type of trading. In commodity market economic rescission's can shed low effects. Reason is that the price of commodities does not fluctuate as frequent as the prices of currency fluctuate during economic crises. Moreover currency rates vary with every minute event in economic field. While the effects of these events reaches to commodity market after a certain period. This factor makes money market little safe and less fluctuating market. However the net effect of economic changes reaches the commodity market and shows its effects on trade in commodity market.

Another benefit of commodity market is that in most of the cases commodity remain available in the market for trade. This thing not only attracts the customers but also make him satisfied with the physical view of commodity. Customer can check the quality and quantity of Commodity at the spot and also can assess the value of the commodity at first hand. This thing reduces the risk of loss for both the seller and the buyer. Hence the trader feels more comfortable while trading in commodity market rather than the other mode of trade. These factors make the commodity market more successful than the other types of trade markets.

Above said are the basic concepts which lead the commodity market and cause the rise and fall of market in its operations. Anyone who is interested in commodity market for trade must understand these factors and forces and must keep in mind while trading in this market. These factors can make him successful and also can case the loss in trade for him. You can Trade with [b binary] for quick profits and fast, easy withdrawals. Moreover receive a 100% match bonus on your first deposit. These offers by the bbinary are matchless and attractive.

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