Volume Contributions on 3 major National Commodity exchanges

sunandaC

New member
Analysis of volume contributions on three major national commodity exchanges reveled the following pattern,

Majority of trade has been concentrated in few commodities that are

• Non Agricultural Commodities (bullion, metals and energy)
• Agricultural commodities with small market size (or narrow commodities) like guar, Urad, Mentha etc.


Trade strategy
It appears that speculators or operators choose commodities or contracts where the market could be influenced and extreme speculations possible.
In view of extreme volatilities, the FMC directs the exchanges to impose restrictions on positions and raise margins on those commodities. Consequently, the operators/speculators chose another commodity and start operating in a similar pattern. When FMC brings restrictions on those commodities, the operators once again move to the other commodities. Likewise, the speculators are moving from one commodity to other (from methane to Urad to guar etc) where the market could be influenced either individually or with a group.

Beneficiaries

So far the beneficiaries from the current nature of trading are
Exchangers: - making profit from mounting volumes
Arbitragers
Operators
 
Top