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.
1 + 2 =
Solve this simple math problem and enter the result. E.g. for 1+3, enter 4.

Recent Articles

Get Inspire

Inspire Tags

gate barrier dubai (1)Led Area Light Houston TX (7)Software Development Company in Houston (10)Diet food recipes (1)Healthy lifestyle blog (1)Alibaba Founder (1)commodity trading (1)inspirational quotes (1)Lee Atwater (1)Quotations on Valentine Day (1)Og Mandino (1)Marathon (1)Walt Disney (1)IVF success (1)buy dogs in bangalore (1)Leonard Cohen (1)Religion Quotes (1)Erykah Badu (1)Goral Gandhi (1)Angela Merkel (1)Virginia Postrel (1)A.P.J. Abdul Kalam (1)Tommy Lasorda (1)Hermann Hesse (1)Jessica cox (1)Yogi Berra (1)James Cash Penney (1)William Arthur Ward (1)storage solutions dubai (1)wire rope manufacturer (2)Merchant_Processing_Houston (6)Humor Quotes (1)Miracle Man (1)Successful people (1)investment (1)Real estate (1)Paul Mellon (1)Quotations on money (1)Faith quotes (1)Emotional Quotes (1)Construction (1)Endometriosis (1)benefits of IVF (1)Abdul Kalam Quotations (1)Time management skills (1)Gautama Buddha (1)cantilever shelving systems (1)Matt Cartwright (1)Aristotle (1)Immigrate to Canada (1)Success (10)hvac companies in dubai (1)Fire Damper (1)Geophones Austin TX (2)Apple CEO (1)Hope quotations (1)Sean Swarner Everest Climber (1)Commercial LED Outdoor Lighting Houston TX (7)Scilla Elworthy (1)Valentine Day (1)Rick Steves (1)Best astrologer in India (1)Merchant_Services_in_Houston (6)Successful woman (1)Team Management Quotes (1)Jacob A. Riis (1)Curtis Carlson (1)design (2)Do the work (1)wedding photographer (2)Seismic products Houston TX (4)John Dryden (1)Web Development Company Houston (12)stall (1)Memorial Day (1)Honesty Quotes (1)testing lab in delhi (2)pgdm courses (1)Mother Quotes (1)Happiness quotes (1)Mary Kay Ash (1)IVF (9)Web_Development_Company_Houston (1)Most Inspirational Quotes (1)Mark Pocan (1)Life Quotes (1)Motivational Quotes (4)Best Overseas Education consultants in UAE (1)Vibration detectors Calgary Canada (7)esma approved ac manufacturer (1)Invention (1)Embryologist (1)Intelligence Quotes (1)Tracy Morgan (1)Geophones Dallas TX (1)High Temperature Geophones Houston TX (3)Sports Quotes (1)Knowledge Quotes (1)PGDM course (1)Change Quotes (1)NRI Privilege Health Card (1)Vision Quotes (1)Wisdom Quotes (1)Relationship quotes (1)Bearing Detector Dallas TX (2)Steven Wright (1)neet practice papers (1)Freddie Highmore (1)chain sling manufacturer (2)Henry Ford (1)Aarohi Pandit (2)High temperature geophones Quebec Canada (1)Inspirational story (1)Satchel Paige (1)Hilarie Burton (1)B. F. Skinner (1)Oliver Sacks (1)dream quotes (1)Learning Quotes (1)Humanity (1)Games (1)Jacky Ickx (1)Passion Quotes (1)Vibration detectors London England (1)W. C. Fields (1)Team Building Quotes (1)Vincent Nichols (1)MLM business (2)Karin Slaughter (1)Merchant_Services_Houston (6)Parents day Quotes (1)Hunter S. Thompson (1)Digital marketing (1)Nobel Prizes (1)PPC (1)Innovation (1)Kamal Hassan (1)Jack Ma (1)Mahatma Gandhi Quotes (1)mep consultants (1)Quotes on Teenage (1)study visa (1)God Quotes (1)Creativity (3)Henry Wadsworth Longfellow (1)Failure Management quotes (1)Romance (1)Wilfred Peterson (1)assisted reproduction (2)Harriet Beecher Stowe (1)Khashaba Dadasaheb Jadhav (1)Randy Pausch (1)Dalmia Group (1)Steve Jobs Quotes (1)tips to hire top photographers (2)Dusk to Dawn Led Light Bulb Houston TX (7)best wedding photographer (2)Vibration Sensor Austin TX (7)Bookkeeping services in Dubai (1)Mini Led Flood Light Houston TX (6)IVF Specialist in Mumbai (11)William Feather (1)Bearing Detector Houston TX (6)Quotations on Romance (1)Poetry (1)Amit Kalantri (1)high speed doors uae (1)Bill Gates (1)Positive Thinking (1)Low Frequency Geophones Houston TX (3)Joe Morgan (1)Patriotism (1)Best Led Light Bulbs Houston TX (4)Machine Balancing Geophones Dallas TX (6)High Temperature Geophones Dallas TX (2)Success quotations (1)Nature Quotes (1)Criss Angel (1)Software Development in Houston (12)study mbbs abroad (2)team work (1)Sudha Chandran (1)Quotations on Patriotism (1)C.G. Jung (1)J.K. Rowling (1)canada Universities (1)Attitude Quotes (1)Healthy and fitness blogs (2)love tarot (1)Ecommerce Web Development Houston (3)wedding photography in lucknow (1)Dalmia Family (1)Marriage Quotes (1)Custom Software Development Houston (9)Stephen Covey (1)Vibration Detector Austin TX (7)Margaret Heffernan (1)Monique Murphy (1)Jean Chatzky (1)mep services (1)ielts (1)Building (1)Gilbert K. Chesterton (1)Richard Branson (1)John Quincy Adams (1)Jamie Oliver (1)Jane Addams (1)Dr Goral Gandhi (2)Robert Collier (1)Toy Testing (1)UL Classified fire damper (1)free online tarot card reading (1)Houston Software Development Company (11)Positive Thinking Quotes (1)Charles Dickens (1)air conditioning companies in dubai (1)Inspire (2)hospitals in Eastern India (1)lifting equipments manufacturers (2)Nelson Mandela (1)M.J.Ryan (1)Experience Quotes (1)Sports Inspiration (1)John Powell (1)Henry J. Kaiser (1)Jean Paul Friedrich (1)Barack Obama (1)Earl Nightingale (1)Winston S. Churchill (1)Daniel H.Pink (1)Failure Management (1)Immigration Quotes (1)Glenn Greenwald (1)William Makepeace Tahckeray (1)Low Frequency geophones London England (3)Courage Quotes (1)Kumar Mangalam Birla (1)Led Corn Bulb Manufacturers Houston TX (7)wedding photographer in lucknow (2)Alan Greenspan (1)Marya Mannes (1)Anita Roddick (1)Earl Wilson (1)spectro labs (2)Atlantic Ocean (2)Tony Robbins (1)abroad education consultants (6)Gerald Chertavian (1)John D. Rockefeller (1)Punctuality (1)Anthong Foxx (1)UL Fire Damper (1)Smoke Dampers (1)canada education (3)democritus (1)Judy Blume (1)Chance Quotes (1)Mark Frauenfelder (1)Amphibious building style (1)Inventors (1)Hope (1)Albert Einstein (1)neet mock test papers (1)Dr Goral Gandhi Mumbai (2)Ryan International School (3)Geophone Suppliers Dallas TX (1)Hard work (3)Farmer (1)Thad Cochran (1)trade show (1)water testing lab in delhi (2)team management (1)Bill Clinton (1)Vapor Tight Led Houston TX (7)Studying Abroad (3)Dave Ramsey (1)Dr T.P.Chia (1)condensing unit (1)C.S. Lewis (1)Low Frequency geophones Ontario Canada (1)Seismometer London England (4)Madonna Ciccone (1)Alex Morritt (1)Abraham Lincoln (1)Top 10 Indian CEO’s (1)Larry Bird (1)Parents (1)Vibration detectors Quebec Canada (8)Goal Setting Quotes (1)Inventors killed (1)Do it (3)Never give up (2)neet question bank (1)Goral Gandhi IVF (1)Mobile_Payments_Houston (6)H.Jackson Brown (1)Website Development Company Houston (12)Eric Ripert (1)Erma Bombeck (1)Ernest Hemingway (1)High Temperature Geophones Ontario Canada (4)chapter wise questions for neet (1)George Bernard Shaw (1)Julie Andrews (1)Mark Twain (1)Sundeep Kochar (1)Health (3)Sydney J. Harris (1)neet question papers with answers (1)air conditioning ducting supplies (1)Leadership Quotes (1)Spirituality Quotes (1)Robert Breault (1)dog puppies for sale in bangalore (1)Ferdinand Marcos (1)Appreciation Quotations (1)Security Velocity Sensors Dallas TX (7)Aesop (1)Quotes On Travel (1)creative (1)SEO Company (1)SEO Company in Houston (11)Point_of_Sale_Houston (6)Narendra Modi (1)Vibration Sensor Houston TX (4)Sania Mirza (1)Management quotes (1)ccess doors manufacturer (1)Bobby Scott (1)Australia Education Consultants (1)Arthur C. Clarke (1)Quotes on Truth (1)Benjamin Franklin (1)Leadership (1)Vibration detectors Ontario Canada (4)Liz Murray (1)Quotes (1)Yehuda Berg (1)Christiane Northrup (1)Kofi Annan (1)Darell Hammond (1)Shiv Khera (1)Behaviour (1)dog dealers in bangalore (1)Self driving car in Bangalore (1)Women (1)Floyd Mayweather Jr. (1)Ryan Pinto (1)management institute (1)Bookkeeping services in UAE (1)Vibration Detector Houston TX (5)dog sellers in bangalore (1)William Morris (1)study in canada (1)Leo Rosten (1)canada immigration (1)Wall Mount Led Lights Houston TX (7)Melody Beattie (1)Love Quotes (1)William Butler Yeats (1)Bookkeeping services in abu dhabi (1)Analytical Testing Lab (3)King Solomon (1)Michelle Obama (1)Lucius Annaeus Seneca (1)Education Consultants (1)Conrad burns (1)plato (1)Oprah Winfrey (1)Joseph Addison (1)assisted hatching (1)Indian Successful CEOs (1)visa (1)Ludwig van Beethoven (1)Rabindranath Tagore (1)New Year's Quotations (1)Mahatma Gandhi (1)BTL activities (1)Vera Nazarian (1)Led Flood Lights Houston TX (5)chain block suppliers in uae (1)Douglas Adams (1)Paul J.Meyer (1)tarot card reading (1)Sanjay Dalmia (1)Paul Watson (1)Vince Lombardi (1)mep consulting engineers (1)Geophones Houston TX (4)No idling (1)Legal Quotes (1)Sophie Swetchine (1)Achievement (4)Lou Holtz (1)Dalmia Health (1)Hard Work Quotes (1)High temperature geophones Calgary Canada (7)horizontal life line system (1)Henry Wheeler Shaw (1)Siri Hustvedt (1)Poorna Malavath (1)Richard Carlson (1)Laurence J. Peter (1)Quotations On Memorial Day (1)earth-quake resistant (1)results (1)Bearing Detector Austin TX (7)safety equipment suppliers in uae (1)Norman Douglas (1)Jobs (1)Integrity Quotes (1)Howard Schultz (1)john dewey (1)Lou Rawls (1)education quotes (1)Machine Balancing Geophones Houston TX (4)Dalai Lama (1)Credit_Card_Processing_Companies_Houston (6)Entrepreneur (1)Health quotes (1)Time management (2)Shaun White (1)Charles Lamb (1)Great Quotes (1)ICSI (1)stall designing (1)Shari Arison (1)Adam Grant (1)Andrew Carnegie (1)Dr Gautam Allahbadia (18)Teachers’ Day Quotes (1)Marc Benioff (1)Peter drucker (1)James Altucher (1)Robert De Niro (1)Quotes on Sympathy (1)Salman F Rahman (1)Hope Quotes (1)Software Development Company Houston (12)Suzy Kassem (1)James Heckman (1)Funny Quotes (1)access door supplier (1)Better building construction (1)Failure quotes (1)Indian Film Actor (1)Andrew Shue (1)Louis Pasteur (1)Bernard Baruch (1)concrete building (1)Conan O Brien (1)Jon Oringer (1)Epictetus (1)Led Wall Pack Light Houston TX (7)foreign education experts (1)Conrad Hilton (1)Thomas Edison (1)Naveen Jain (1)Soft skills (1)dogs for sale in bangalore (1)Hydrophone and Dual Sensors Houston TX (4)Leo Buscaglia (1)Led Light Fixtures Houston TX (4)Laws of life (1)Bangladesh (1)exhibition (3)Women Quotes (1)LED Panel Lights Houston TX (6)Alexander Solshenitsen (1)Rudyard Kipling (1)education (5)eligibility requirement Canada PR (1)Bertrand Russell (1)Patrick Henry Hughes (1)Clare Boothe Luce (1)Steve Jobs (1)Communication Quotes (1)Top Led Light Manufacturers in USA (5)Music Quotes (1)VIDEO (2)George Horace lorimer (1)Travis Bradberry (1)Shannon L. Alder (1)Fyodor Dostoyevsky (1)LED Landscape Spot and Flood Lights Houston TX (6)Credit_Card_Processing_Companies_in_Houston_TX (6)Yuval Noah Harari (1)Brian Greene (1)Mireille Guiliano (1)hygiene unit (1)Drake (1)M.Scott Peck (1)Stephen King (1)Julius Erving (1)Ecommerce Development Houston (1)Emma Thompson (1)Peace Quotes (1)Led Canopy Lights Houston TX (7)tarot for career (1)James Humes (1)Helen Keller (1)Albert Schweitzer (1)IELTS coaching Gurgaon (1)neet online mock test (1)Software Companies in Houston (9)Calvin Coolidge (1)Mother Theresa (1)chain block manufacturer (2)Punctuality skills (1)Orson Scott Card (1)Scientists (1)Vincent Van Gogh (1)AMRI Hospitals Bhubaneswar (1)C. JoyBell C Biography (1)Swami Vivekananda (2)water testing lab (2)Sympathy (1)water testing (2)Angela Ruggiero (1)Groucho Marx (1)Rick Pitino (1)Dr Gautam Allahbadia Mumbai (18)SEO Expert Houston TX (3)neet questions chapter wise (1)SEO services (1)Rod Blagojevich (1)Orison Swett Marden (1)Tom Peters (1)Daniel Goleman (1)Commitment quotes (1)Benjamin Disraeli (1)wedding photography (1)Steven Pressfield (1)SEO Expert HoustonTX (7)Vibration Sensor Dallas TX (7)David Levithan (1)Young Jeezy (1)AMRI Hospitals (1)Self Driving Car (1)Team work quotes (1)encouragement quotes (1)Poem (1)medical emergency (1)Business quotes (1)Self-Discipline Quotes (1)Safety (1)Marathon Racer (1)D.H. Lawrence (1)Julia Gillard (1)Celebrity astrologer in india (1)Mikaela Shiffrin (1)Andre Gide (1)Machine Balancing Geophones Austin TX (1)New Year (1)Geophone Suppliers Houston TX (4)Harry Stack Sullivan (1)Vibration Detector Dallas TX (6)Tom Freston (1)Maya Angelou (1)Share Market (1)Voltaire (1)air conditioning company in dubai (1)Pallam Raju (1)Mary Anne Radmacher (1)Brian Acton (1)Low Frequency geophones Quebec Canada (4)neet mock test (1)Business person (1)Jeff Hawkins (1)Alexander Graham Bell (1)Peggy Fleming (1)wedding photography trends (1)Running (2)Martin Luther King Jr (1)Hydrophone and Dual Sensors Dallas TX (5)Marvin Bower (1)Strength (1)Fitness Quotes (1)Fly Solo (2)buy dogs bangalore (1)Spiritual Leader (1)pgdm (1)Damian Woetzel (1)Anne Morrow Lindbergh (1)Ronald Ross (1)Brene Brown (1)Low Frequency geophones Calgary Canada (7)Ocean Bottom Seismic Houston TX (4)kolkata hospitals (1)inspiring (1)Amy Schumer (1)Oscar Wilde (1)Friendship Quotes (1)Quotations on Stregnth (1)cantilever racking supplier (1)MLM consultant (3)Jim Rohn (1)Money (1)Antoine de Saint-Exupéry (1)Miguel de Cervantes (1)Persistence Quotes (1)Isak Dinesen (1)online mock test for neet (1)John F. Kennedy (1)Family Quotes (1)Thomas Carlyle (1)Nick Vujicic (1)Brain Tracy (1)ahu unit manufacturer (1)Security Velocity Sensors Houston TX (4)Service (1)Micky Ward (1)Robert Gately (1)Low Frequency Geophones Dallas TX (6)Marty Rubin (1)Fathers day quotes (1)Marcus Tullius Cicero (1)Healthcare (5)James Whitcomb Riley (1)Inspiration (3)Dale Carnegie (1)best wedding studio in lucknow (1)Madam Grace Pinto (1)Never Give Up Quotes (1)Want to Immigrate to Canada (1)Harvey Mackay (1)Truth (1)