What are the benefits of physical commodity trading over trading in commodities using derivatives






Physical trading also known as cash trading, gave way to forward trading. Forwards allowed some market participants to hedge price risk for production. They also allowed others to speculate or invest in the future direction of prices.
Derivatives are products whose value is derived from one or more basic variables called underlying assets or base . Derivatives are financial security such as an option or future whose value is derived in part from the value and characteristics of another an underlying asset. If you want to generate good returns on your returns, a more viable option would be to invest in commodities and stock. Khelo MCX, one of the trusted brand in commodity tips provider. There are numerous advisory firms in india such as 100 MCXtips, share khan, Angel broking etc you can opt from.
(Source : https://www.quora.com/What-are-the-benefits-of-physical-commodity-trading-over-trading-in-commodities-using-derivatives)



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