What is the commodity exchange?
Commodity exchange is a coherent market where a large number of suppliers offer their goods. In this market, the relevant goods are offered to buyers after expert reviews and pricing by commodity exchange experts.
Raw and unprocessed goods such as metals, cotton, wheat, rice, etc. are usually traded in this market. One of the advantages of this market is the presence of regulatory and market regulatory institutions, and all producers, consumers and commodity traders will enjoy the benefits of the rules and regulations governing the stock market with the presence of these institutions.
The emergence and evolution of commodity exchanges in the world
Examining the process of emergence and evolution of commodity exchanges in the world indicates that such markets in the economic field of countries since the 19th century have sought to respond to some economic needs and in many cases to solve some bottlenecks and obstacles in the market of various goods.
In fact, the inadequacies of traditional markets in the form of false fluctuations and lack of transparency in price discovery and the lack of necessary guarantees for traders have been the most important reasons for setting up commodity exchanges in countries around the world.
In such a situation, the existence of commodity exchanges and the use of derivative instruments have led to the emergence of an organized system of trading and distribution of goods in different countries and has facilitated the way for countries to enter the world markets .
Therefore, there are hundreds of modern stock exchanges around the world, the oldest of which are the famous and commercial Chicago Stock Exchange (CME) with 170 years of history, the London Metal Exchange (LME) with 130 years of history, the New York Stock Exchange (NYMEX), the Tokyo Stock Exchange ( TOCOM), Shanghai Commodity Exchange (SHFE), Indian Commodity Exchange (MCX).
Who visits the stock exchange?
1- The first group are those who want to be safe from the risk of false price fluctuations. In fact, commodity exchanges are known as an effective factor for reducing the risk of commodity producers and major consumers in the market.
2- The second group, unlike the first group, uses price fluctuations and maximizes their profit. In commodity exchanges, this group is known as speculators.
Commodity exchange in Iran
In line with the goals of the 3rd and 4th development plans, according to which the Supreme Council of the Stock Exchange was obliged to launch and expand commodity exchanges in Iran, the metal stock exchange in September 2008 (the first commodity exchange in Iran) and the agricultural stock exchange in September 2009 started to They worked. Based on the Securities Market Law of the Islamic Republic of Iran and with the approval of the Supreme Council of the Stock Exchange, Iran Commodity Exchange Company was established in December 2006 by merging the Metal Exchange and the Agricultural Commodity Exchange, and after the subscription and holding the general assembly, it started its work under The opinion of the Stock Exchange and Securities Organization began. It should be mentioned that the pillars of Iran Commodity Exchange Company now include “General Assembly”, “Board of Directors”, “CEO”, “Inspector/Auditor”.
What contracts are traded in the commodity exchange?
All transactions in the commodity exchange are carried out in the form of standard contracts. In general, there are “cash”, “advance”, “loan”, ” future “, ” option “, “peace” and “exchange” contracts for the trading of each commodity.
Frequently Asked Questions
Is it necessary to receive a stock exchange code for transactions in the commodity market?
Yes. You can get a stock exchange code by visiting one of the useful brokerage branches.
Can I trade the stock market online?
Yes, if the customer has access to the online trading portal, he can make transactions online
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