Views Collection

Future commodity market has been gaining popularity in Nepal in the last couple of years or so. It is a good platform which enables large as well as small investors to trade commodities and earn a good return if transactions are made sensibly and wisely. Some people may relate future commodity business as a pure gamble but it is not. Through intense research and studies of the market and the factors that affect global economy, a wise investor is likely to earn a good return.

Future commodity as the name suggests refers to those products which are due to be produced in the future. Without having something produced, investors are to buy or sell those commodities prior to the production. The commodity exchange issues contracts of certain future commodities which the investors can sell or buy. Selling and buying of commodities are the most important function in future commodity trade. It may sound impractical when we hear about selling or buying commodities which are not at all produced, but future commodity is what it’s all about.
 

Say, the commodity exchange issues a contract for gold for three months due. Investors can buy or sell gold buy predicting the price of gold in three months away from time. It is basically like paying the price of something in advance. Say for instance, if the price of gold at present is at sixteen hundred dollars per ounce, and if the market showed some signs of the price increasing in three months time, it would be beneficial to buy gold at present. Because, if the price of gold could reach seventeen hundred dollars per ounce in three months time, then a hundred dollar is profited if it is bought at present at sixteen hundred dollars. 

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