NCDEX stands for National Commodity & Derivatives Exchange Limited (NCDEX). NCDEX is a professionally managed on-line multi commodity exchange. The shareholders of NCDEX comprises of large national institutions, large public sector bank and companies.
NCDEX headquarters are located in Mumbai and has more than 390 centers around the country and it offers facilities to its members from the centers located throughout India. With the origin of NCDEX majorly deals with the Agri-products, the days have gone when only physical trading is possible. It has open huge doors of success in the Indian agriculture market. Now these products can be traded around the globe that increases the export rate. Indian commodity market majorly has two different segments. i.e. MCX and NCDEX where MCX deals in the precious and other metals like Gold, silver , copper, lead etc., Where NCDEX allows trade in the Agri commodities.
Now a days 57 different types of commodities are listed in NCDEX, which includes Agri-commodities, energy, bullion, ferrous and non-ferrous metals, plastic where products traded on the spot basis price. NCDEX currently enable trading in 36 different types of Agri commodities which includes Cashew, Castor seed, Chana, Chilli, Coffee, Cotton, Cotton Seed Oil cake, pepper, Rapeseed – Mustard Seed, raw Jute, RBD Palmolein, Refined Soy Oil, Rics, Rubber, Sesame seeds, Silk, Silver, Soy Bean, Sugar, Tur, Turmeric, Urad (Black Matpe), Wheat, Yellow peas, yellow red Maize & Yellow Soybean Meal, Crude Palm Oil, Expeller Mustard Oil, Gold, Guar gum, Guar Seeds, jeers, Jute sacking bags, Mild Steel Ingot, Mulberry Green Cocoons.
There is a huge difference between physical and digital online trading as online trading of Agri-product reduce cost of maintaining, one can purchase and sell without getting physical commodities. There are mainly two types of trading- Spot and Futures contract. NCDEX provided an ultimate technological efficient and market and user-friendly platform for commodity trading.
In fact, the size of commodities markets in India is also quite significant. Of the country’s GDP of Rs. 13,20,730 crore commodities related and dependent industries constitute about 58%.
This NCDX platform also helped retail investors and traders to diversify their portfolios beyond shares, bonds and real-estate.
Historically, pricing in commodities futures has been less volatile compared with equity and bonds, thus providing an efficient portfolio diversification option. Trading in commodities also helped to hedge against unpredictable disasters.
Before starting trading in the commodity with NCDEX, one must be aware of different aspects of commodity market which can bring benefits for one’s trading decision.