Apart from the agriculture sector, more than 50% of industries in India are directly or indirectly related to the commodity sector. It is here, in our country, that we focus more on equity trading rather than commodity trading, unlike the global phenomenon. Equity trading is gaining momentum, but many investors are slowly getting interested in trading in commodities and currencies.
Each asset class has a different dynamic to it. Price movements drive them all and it is important to understand how these movements affect these assets. Equity markets are driven by the ups and downs of the stocks. Commodities and currency markets are majorly influenced by macro-economic factors that drive demand and supply. For commodities, the factors are demand & supply, geopolitics, weather conditions, policies of trade etc. Currency trading is affected by geopolitics and other such macroeconomic factors.
