1. What are commodity products?

Commodity products are basic goods used in commerce that are interchangeable with others of the same type — such as gold, silver, crude oil, natural gas, and agricultural products.

2. What are the types of commodities traded?
Commodities are mainly classified into four types: Metals, Energy, Agricultural, and Livestock products.

3. How does commodity trading work?
Traders buy and sell commodity contracts through exchanges like MCX (Multi Commodity Exchange) based on price movements to earn profits.

4. What is the difference between spot and futures trading in commodities?
Spot trading involves immediate buying or selling, while futures trading involves a contract to buy or sell at a future date at a predetermined price.

5. Why should investors trade in commodities?
Commodities help diversify a portfolio, hedge against inflation, and provide opportunities for good returns when prices fluctuate.

6. What are the risks involved in commodity trading?
Price volatility, global demand-supply changes, weather conditions, and geopolitical factors can all affect commodity prices.

7. How can beginners start commodity trading?
Beginners should open a commodity trading account with a trusted broker, learn market basics, and start with small investments.

8. What is margin trading in commodities?
Margin trading allows traders to control large commodity positions by paying only a fraction (margin) of the total value upfront.

9. Are commodities regulated in India?
Yes, commodity trading in India is regulated by SEBI (Securities and Exchange Board of India) to ensure fair practices.

10. How does TradeBox Capital help in commodity trading?
TradeBox Capital provides expert guidance, market insights, and advanced tools to help traders make informed commodity investment decisions.

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