Will there be a ban in commodities trading in India?

#1
I heard or read somewhere that some political parties are trying to seek ban on commodities trading in India? Is it true? If so will it happen? Sorry for this abrupt question here, but just wanted to know as I am planning to set my foot on commodities trading now and wanted to know whether it would a worthy one to join the bandwagon to start my career in this great field.
 

Sunny1

Well-Known Member
#2
I cant think of ban in commodity ....

India is ever growing market ...they cant ban it...

But yes commodity is controlled market ...anytime govt imposes new rules , instruction ..temporary or permanent...
 
#4
I heard eventhough they wanna ban , they can only ban Trading in Agri products , like Wheat,Sugar and such products coz many say these are the things that increases the price of commodities ...

Banning Gold and Silver and energies is impossible ...

but anyone who is more expert in this field , plz clarify
 

Klewtar

Well-Known Member
#5
Those who don't have enough of an understanding of how commodity markets work, may be fearful and try to stop the trading of commodities. Unfortunately, most of the labor force and even the educated work force, are incapable of noticing and therefore profiting from price trends so the majority may ask for a ban in commodity trading without really understanding commodity trading.

Trading wheat futures was stopped a few years ago because the futures market was blamed for rising prices. Wheat prices rose quite a bit this year too and margin requirements were raised, on the 6th, to 10 percent. I think that it was unnecessary to raise margins since the price of wheat was going to fall this week and the timing of the margin increases made it seem that it was the reason that the price of wheat has fallen.

Imho, prices can dramatically rise and fall without speculators and I think that speculators are unable to manipulate the markets.

Futures trading is a specialized market and as stated in a previous post on this thread, is
need for hedging purposes (and a healthy economy.)
 

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