Introducing Commodities Market
Commodity markets trade in primary or natural products. There are two categories of commodities, being Soft and Hard. Soft commodities are agricultural products such as wheat, coffee, cocoa and sugar. Hard commodities are mined, such as gold, rubber and oil.Investors access about 50 major commodity markets worldwide with purely financial transactions increasingly outnumbering physical trades in which goods are delivered. Futures contracts are the oldest way of investing in commodities. Futures are secured by physical assets. Commodity markets can include physical trading and derivatives trading using spot prices, forwards, futures, and options on futures.
Bangladesh government has recently taken an initiative to establish a commodity exchange market. Even though the concept of commodity exchange market is new to us, it has long been in practice in the western countries. Recently this concept is gaining popularity in many of the Asian countries such as India and China, who are already accustomed to this market and have been in operation since 1993 and 2002 respectively.
Kabir Securities Limited believes that, Bangladesh has a huge prospect in Commodity Exchange/Market, and has already took initiatives to prepare necessary knowledge and skills to operate in the commodities market once that opportunity becomes open to the mass people of Bangladesh.