What is the meaning of commodity derivatives? How is it different from physical commodity trading?



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.
Physical trading also known as cash trading, gave way to forward trading. Forwards allowed some market participants to hedge price risk. They speculate in future price movement.
If you want to generate good returns on your investment , a more lucrative option to trade in commodity. There are many advisory companies such as 100 MCXTips, Bazaar trading. I would suggest from trading experience KheloMCX provides accurate commodity tips based on fundamental and technical analysis.
(Source : https://www.quora.com/What-is-the-meaning-of-commodity-derivatives-How-is-it-different-from-physical-commodity-trading)

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