Difference Between Share Market And Commodity Market Is Bound To Make An Impact In Your Trading

Tags: 
Share Marketcommodity tradinginvestment

This is no longer an era where investment is limited to stocks. From bonds to shares to mutual funds to commodity, you can use multiple trading methods to diversify your portfolio and maximize your profit. Even if one trading industry crashes, investors don't lose all their money as they have already reduced their risks by investing in other forms of trading. While the difference between the share market and commodity market is quite clear to most of the investors, beginners still wonder "how share market differ from the commodity market". Or, what is that unique factor you can expect from a commodity market? Let's start with the stock market.

What is the Stock Market?

There are several stock exchanges in a country, for example, the Bombay Stock Exchange and National Stock Exchange are the famous stock markets in India. Similarly, New York has two of the world's most famous stock exchanges namely Stock Exchange (SE) and the NASDAQ Stock Market. In the stock market, traders represent buyers and invest in the shares of a specific public company. If the price of these shares goes up, the investors enjoy the benefits. On the contrary, if prices fall down, the investors bear the loss.

What is Commodity Market?

Similar to the stock market, a commodity market can be defined as the financial marketplace where the selling and purchasing of commodities take place. Basically, traders invest their money in raw materials that are used for the manufacturing and production of other high-value products. You can purchase the same commodity from multiple sources and sell it to different customers. Gold, silver, platinum, crude oil, petroleum, and other such raw materials are traded in the commodity market. It is often considered a hedge against inflation and economic uncertainties.

Difference Between Commodity Market and Stock Market

As mentioned above, the commodity market is somewhat similar to the stock market as it is a financial platform where trading takes place. But instead of investing in shares, traders put their money on precious metals, oil, petrol, gas, and other such commodities. Here are some other differences between the commodity and the stock market.

· Time Duration

The major difference between the stock and commodity market is the time they remain on the exchange. The shares usually remain on the exchange for years, and the organizations that have issued it keep on doing their business. On the contrary, companies sell commodities in the form of future contracts.

· Better Knowledge

When you invest in the stock market, you need to look into the financial condition of the company, transparency, and authentication of the organization before buying its shares. The financial knowledge in the stock market is important as you cannot risk your money. On the other hand, you don't need to run this background check in the commodity market as commodities are transparent by nature. As they are natural resources, a human cannot manipulate their prices.

These were the major differences between the commodity market and the stock market. It is always better to diversify your portfolio by investing in both sectors.

Author: 
Amit Goyal

Add new comment

CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.
3 + 0 =
Solve this simple math problem and enter the result. E.g. for 1+3, enter 4.

Recent Articles

Get Inspire

Inspire Tags

Mahatma Gandhi Quotes (1)John Powell (1)Benjamin Franklin (1)ICSI (1)Leonard Cohen (1)Valentine Day (1)Failure Management (1)democritus (1)Apple CEO (1)Jessica cox (1)Oscar Wilde (1)high speed doors uae (1)Quotations on money (1)air conditioning ducting supplies (1)Angela Ruggiero (1)Clare Boothe Luce (1)Quotations on Valentine Day (1)Games (1)AMRI Hospitals (1)Faith quotes (1)Aristotle (1)Yogi Berra (1)medical emergency (1)Quotes (1)Benjamin Disraeli (1)Nelson Mandela (1)Hope Quotes (1)Khashaba Dadasaheb Jadhav (1)Rabindranath Tagore (1)Julia Gillard (1)Jane Addams (1)Liz Murray (1)Isak Dinesen (1)Health quotes (1)neet practice papers (1)dream quotes (1)Oliver Sacks (1)Service (1)Humanity (1)Wisdom Quotes (1)Mikaela Shiffrin (1)Bertrand Russell (1)IVF Specialist in Mumbai (11)Success quotations (1)Maya Angelou (1)Orson Scott Card (1)Quotes on Sympathy (1)Dalmia Health (1)Joe Morgan (1)neet questions chapter wise (1)Intelligence Quotes (1)Team Building Quotes (1)hospitals in Eastern India (1)Lucius Annaeus Seneca (1)Inventors (1)Conrad Hilton (1)Nature Quotes (1)Running (2)Anne Morrow Lindbergh (1)Emma Thompson (1)Naveen Jain (1)earth-quake resistant (1)Mother Theresa (1)Sudha Chandran (1)neet mock test papers (1)Amy Schumer (1)Albert Einstein (1)Indian Successful CEOs (1)Poetry (1)air conditioning company in dubai (1)God Quotes (1)Andre Gide (1)Jamie Oliver (1)Patriotism (1)Hope quotations (1)Music Quotes (1)Dr Goral Gandhi Mumbai (1)Gautama Buddha (1)Charles Dickens (1)Romance (1)Stephen Covey (1)Melody Beattie (1)Damian Woetzel (1)Persistence Quotes (1)Peter drucker (1)Fathers day quotes (1)Calvin Coolidge (1)Sania Mirza (1)Larry Bird (1)ahu unit manufacturer (1)Truth (1)Karin Slaughter (1)Winston S. Churchill (1)Peace Quotes (1)Erykah Badu (1)Groucho Marx (1)Building (1)access door supplier (1)Experience Quotes (1)Motivational Quotes (4)Shaun White (1)William Feather (1)Harvey Mackay (1)Fitness Quotes (1)Anita Roddick (1)Abdul Kalam Quotations (1)assisted hatching (1)Money (1)Robert Gately (1)Life Quotes (1)Brian Acton (1)Dr Gautam Allahbadia (18)Orison Swett Marden (1)A.P.J. Abdul Kalam (1)Mark Twain (1)George Bernard Shaw (1)wedding photographer (1)Pallam Raju (1)Dr Gautam Allahbadia Mumbai (18)Happiness quotes (1)Shiv Khera (1)Miracle Man (1)VIDEO (1)Family Quotes (1)Tracy Morgan (1)trade show (1)wedding photography trends (1)hvac companies in dubai (1)Mark Frauenfelder (1)Spiritual Leader (1)Parents (1)Relationship quotes (1)Steven Wright (1)design (2)Creativity (3)SEO services (1)Dale Carnegie (1)education quotes (1)Louis Pasteur (1)Punctuality (1)William Arthur Ward (1)Marathon Racer (1)Teachers’ Day Quotes (1)Randy Pausch (1)Shari Arison (1)chain block manufacturer (2)Erma Bombeck (1)Helen Keller (1)IVF success (1)Funny Quotes (1)Laws of life (1)assisted reproduction (2)online mock test for neet (1)Anthong Foxx (1)abroad education consultants (4)Floyd Mayweather Jr. (1)Communication Quotes (1)Toy Testing (1)Patrick Henry Hughes (1)Henry Wheeler Shaw (1)Gerald Chertavian (1)Vera Nazarian (1)Lou Rawls (1)Stephen King (1)Quotes On Travel (1)James Heckman (1)Matt Cartwright (1)gate barrier dubai (1)Behaviour (1)Real estate (1)Hunter S. Thompson (1)Innovation (1)Amphibious building style (1)Brene Brown (1)Fly Solo (2)Jean Paul Friedrich (1)Time management (2)chapter wise questions for neet (1)Jeff Hawkins (1)Tom Peters (1)Shannon L. Alder (1)Leadership (1)storage solutions dubai (1)team work (1)lifting equipments manufacturers (2)Bobby Scott (1)wedding photographer in lucknow (1)Management quotes (1)Embryologist (1)Epictetus (1)Gilbert K. Chesterton (1)Brian Greene (1)Achievement (4)Norman Douglas (1)Kumar Mangalam Birla (1)Laurence J. Peter (1)Never give up (2)visa (1)Virginia Postrel (1)Rick Steves (1)Antoine de Saint-Exupéry (1)Freddie Highmore (1)James Whitcomb Riley (1)Honesty Quotes (1)education (4)William Makepeace Tahckeray (1)Inspire (2)Atlantic Ocean (2)encouragement quotes (1)Failure Management quotes (1)Alexander Graham Bell (1)Paul Mellon (1)Positive Thinking (1)Legal Quotes (1)Henry Ford (1)Bangladesh (1)Drake (1)Successful people (1)neet question bank (1)Best astrologer in India (1)Thomas Carlyle (1)Successful woman (1)Goal Setting Quotes (1)Celebrity astrologer in india (1)Inspiration (3)stall designing (1)AMRI Hospitals Bhubaneswar (1)Ryan International School (3)Daniel H.Pink (1)Diet food recipes (1)Vincent Nichols (1)Healthy lifestyle blog (1)Robert De Niro (1)Quotes on Truth (1)Attitude Quotes (1)Og Mandino (1)Amit Kalantri (1)Andrew Carnegie (1)Courage Quotes (1)Bernard Baruch (1)study visa (1)Steve Jobs (1)Inspirational story (1)Rick Pitino (1)Ludwig van Beethoven (1)Dalai Lama (1)chain block suppliers in uae (1)Robert Collier (1)Jacky Ickx (1)James Humes (1)Inventors killed (1)Alan Greenspan (1)C.G. Jung (1)Hermann Hesse (1)Marc Benioff (1)Margaret Heffernan (1)Health (3)canada Universities (1)Most Inspirational Quotes (1)Ronald Ross (1)Alibaba Founder (1)Sophie Swetchine (1)hygiene unit (1)Madam Grace Pinto (1)Voltaire (1)Rudyard Kipling (1)Mother Quotes (1)Leo Rosten (1)Change Quotes (1)Salman F Rahman (1)neet online mock test (1)Quotations on Stregnth (1)Nick Vujicic (1)Fyodor Dostoyevsky (1)Thad Cochran (1)Chance Quotes (1)Earl Wilson (1)Steve Jobs Quotes (1)Paul Watson (1)M.Scott Peck (1)Sundeep Kochar (1)Richard Carlson (1)Sean Swarner Everest Climber (1)Satchel Paige (1)Humor Quotes (1)Integrity Quotes (1)Criss Angel (1)Hope (1)Steven Pressfield (1)spectro labs (2)Charles Lamb (1)kolkata hospitals (1)Scientists (1)Barack Obama (1)PPC (1)water testing lab in delhi (2)Harriet Beecher Stowe (1)horizontal life line system (1)Suzy Kassem (1)Conan O Brien (1)Vince Lombardi (1)exhibition (3)Marya Mannes (1)Aarohi Pandit (2)David Levithan (1)Women Quotes (1)Mark Pocan (1)SEO Company (1)William Morris (1)inspiring (1)H.Jackson Brown (1)Alexander Solshenitsen (1)Miguel de Cervantes (1)Indian Film Actor (1)Quotes on Teenage (1)testing lab in delhi (2)B. F. Skinner (1)Michelle Obama (1)J.K. Rowling (1)Top 10 Indian CEO’s (1)Jacob A. Riis (1)Peggy Fleming (1)Never Give Up Quotes (1)Sports Quotes (1)Self driving car in Bangalore (1)George Horace lorimer (1)Soft skills (1)Nobel Prizes (1)D.H. Lawrence (1)plato (1)James Altucher (1)Bill Clinton (1)Martin Luther King Jr (1)Invention (1)Learning Quotes (1)New Year (1)Narendra Modi (1)Curtis Carlson (1)Great Quotes (1)Do the work (1)Marriage Quotes (1)Madonna Ciccone (1)John D. Rockefeller (1)Tommy Lasorda (1)Aesop (1)William Butler Yeats (1)cantilever racking supplier (1)esma approved ac manufacturer (1)wedding photography in lucknow (1)wedding photography (1)Yehuda Berg (1)condensing unit (1)Sydney J. Harris (1)Siri Hustvedt (1)Henry Wadsworth Longfellow (1)Religion Quotes (1)Sports Inspiration (1)Dalmia Family (1)Dave Ramsey (1)Harry Stack Sullivan (1)Self Driving Car (1)Julius Erving (1)concrete building (1)Thomas Edison (1)Scilla Elworthy (1)Quotations on Patriotism (1)Monique Murphy (1)C.S. Lewis (1)benefits of IVF (1)Kofi Annan (1)Earl Nightingale (1)Construction (1)Success (10)Business quotes (1)Leo Buscaglia (1)Jean Chatzky (1)chain sling manufacturer (2)Walt Disney (1)W. C. Fields (1)wire rope manufacturer (2)Tony Robbins (1)Howard Schultz (1)Yuval Noah Harari (1)Poem (1)Kamal Hassan (1)Robert Breault (1)Marcus Tullius Cicero (1)Judy Blume (1)Hard Work Quotes (1)study mbbs abroad (2)Dalmia Group (1)Leadership Quotes (1)Mary Anne Radmacher (1)Eric Ripert (1)Knowledge Quotes (1)team management (1)IVF (8)Jim Rohn (1)Travis Bradberry (1)neet mock test (1)Wilfred Peterson (1)Share Market (1)Immigration Quotes (1)Sympathy (1)investment (1)King Solomon (1)Love Quotes (1)Sanjay Dalmia (1)Hard work (3)Jobs (1)Abraham Lincoln (1)Oprah Winfrey (1)Memorial Day (1)John Quincy Adams (1)Arthur C. Clarke (1)Team Management Quotes (1)Mahatma Gandhi (1)John F. Kennedy (1)Christiane Northrup (1)Farmer (1)results (1)Rod Blagojevich (1)Micky Ward (1)Julie Andrews (1)Jon Oringer (1)Ernest Hemingway (1)Daniel Goleman (1)cantilever shelving systems (1)Lou Holtz (1)Vincent Van Gogh (1)Better building construction (1)Business person (1)Dr Goral Gandhi (1)Strength (1)Poorna Malavath (1)neet question papers with answers (1)study in canada (1)Glenn Greenwald (1)Endometriosis (1)Adam Grant (1)Positive Thinking Quotes (1)Darell Hammond (1)commodity trading (1)air conditioning companies in dubai (1)Albert Schweitzer (1)Studying Abroad (3)Marvin Bower (1)Entrepreneur (1)Andrew Shue (1)water testing lab (2)Vision Quotes (1)Commitment quotes (1)water testing (2)Time management skills (1)Jack Ma (1)Do it (3)Hilarie Burton (1)Alex Morritt (1)Bill Gates (1)Paul J.Meyer (1)Conrad burns (1)C. JoyBell C Biography (1)Analytical Testing Lab (3)Appreciation Quotations (1)Mary Kay Ash (1)Digital marketing (1)Marty Rubin (1)inspirational quotes (1)ccess doors manufacturer (1)No idling (1)Safety (1)Healthcare (5)Best Overseas Education consultants in UAE (1)M.J.Ryan (1)Brain Tracy (1)Quotations on Romance (1)New Year's Quotations (1)Angela Merkel (1)stall (1)Lee Atwater (1)Ryan Pinto (1)Spirituality Quotes (1)Dr T.P.Chia (1)Swami Vivekananda (2)MLM consultant (1)Douglas Adams (1)James Cash Penney (1)Failure quotes (1)Healthy and fitness blogs (2)Joseph Addison (1)John Dryden (1)Quotations On Memorial Day (1)Marathon (1)Richard Branson (1)Henry J. Kaiser (1)Mireille Guiliano (1)Punctuality skills (1)Young Jeezy (1)Passion Quotes (1)Women (1)Emotional Quotes (1)Parents day Quotes (1)Friendship Quotes (1)Ferdinand Marcos (1)Team work quotes (1)Self-Discipline Quotes (1)canada education (1)creative (1)Tom Freston (1)NRI Privilege Health Card (1)john dewey (1)safety equipment suppliers in uae (1)