COMMODITY BENEFITS


Commodity trading have so many benefits,in which some of the important benefits i have described below

1:Diversification :-

Diversification is the main benefit in commodity trading.Its negative co relation with other assets can diversify our investment in positive way

2: Protection From Inflation:-

Changing inflation data affects commodity in a different way than the other financial products. Price of goods and services will rice due to inflation rice but stocks and bond will be in decline.So traders can make profit  from current scenario of high inflation

3 Hedge against the Risk of an Event:

Commodities can hedge event or    natural calamities like ,wars,droughts floods.etc.In this time demand of certain commodities will be high and price will move  also



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