The importance of the commodity market in the economy is significant. It provides a platform for the trading of goods, raw materials, and various other primary products. Although technological advancements have impacted the commodity market like all other business forms.
Let’s learn how these technologies affect the market and how investors can utilize these technologies to make better decisions regarding commodity trade.
The Objectives of The Indian Commodity Market
Indian commodity market works on certain objectives. These majorly include –
- Creating a free open trading platform that encourages transparency and fair dealings.
- Ensuring that the market is accessible to all and is not controlled only by big players.
- Ensuring the flow of the market is determined by organic changes in supply and demand.
The market is governed by well-established rules that try to hold the set standards. The rise of technology in the market has made these objectives easier.
Technology and Trading Experience
Before online trading platforms, one had to rely on brokers for trading and often had to pay huge commissions. Trading through these intermediaries proved to be a huge hassle for small traders.
The introduction of online trading platforms changed the commodity trading landscape by eliminating these brokers. Online trading platforms have enabled anyone with an internet connection to access the market in real-time. You can now place and track your orders in the comfort of your homes without depending on middlemen.
Note – If you are looking for a platform that gives you the most efficient trading services with ZERO BROKERAGE COMMISSION, download the Shoonya app today! Shoonya is an online trading platform allowing you to trade commodities with advanced trading tools.
How is Technology Making the Market More Accessible?
- Importance Of Information
When it comes to trading, information has always played a huge role in determining who has the upper hand in the market. Multiple variables affect the price of a commodity at any given point. With the introduction of technology, you have all the information at a click. You can know everything about production, storage, consumption, and flow to make the best decision for your investment.
- Change In How Information Is Sourced
Earlier, it wasn’t possible to know the accurate situation of the market. Today, technology has made it possible to get information from multiple sources simultaneously. Thus, you can access accurate data to help you make better decisions.
For example, satellite imagery has made it possible to track the movement of cargo ships with pinpoint accuracy. GPS tracking is used in trucks transporting commodities to offer real-time information about the status of commodities. Similarly, you can know the prices. So, if you want to invest in any commodity today, you can know its position in the market and decide wisely.
- Bridging The Gap Between Small And Big Traders
Big players in the market have their own team of data analysts working around the clock to turn data into useful information. This gives big organizations an unfair advantage. These days, with the improvements in technology, even small traders can access trading platforms equipped with market analytics tools. Access to these trading platforms has given small traders the same power that big players in the game alone used to possess.
As an investor, you should be up-to-date with new technological advancements.
So, move ahead with time and ditch your old investment style, as technology is the future. Download the Shoonya app and start trading smartly. Shoonya offers you a brokerage-free trading platform with advanced comparability tools that help you make better decisions quickly.