What Is Commodity Trading Online
Then you have shares being traded in the Internet,Online.
Combine these both, you get Commodity trading Online,
This Commodity Trading is of two kinds.
One is where you buy on the spot for immediate delivery,'Spot Market'
The other one is derivatives market, various financial instruments based on commodities are traded.
These financial instruments such as 'futures' are traded in exchanges,as the Share are traded.
To operate Commodity business you need a Demat Account(To know more about opening a Demat Account, read my post on Online Trading)
Options in goods are presently prohibited under Section 19 of the Forward Contracts (Regulation) Act, 1952.
No exchange or person can organize or enter into or make or perform options in goods.
There are no custody charges for holding the demat units.
You can take physical delivery of goods on surrendering demat units anytime you like.
The delivery locations and procedures related to physical delivery are specified in the respective product note.
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