Pre-requisites to a Successful Commodity Exchange
The concept of commodity exchange is not new to this world. Commodity is not a new word- people have been dealing with the word commodity since the global economy started with a barter mechanism. Earlier, it was commodity against commodity later it turned out to be money against commodity but the concept always remained the same. After the foundation to the trading scenario was laid, and then injected economics into it. People started knowing that an economy of scale is a vital factor for trade. A producer produces less and prices it more, s/he earns a handsome profit but even if a produces prices his/her produce less but produces more, the profit is higher than in the earlier case. Thus, commodity exchange came up as a combo of the above mentioned trade facilitation and the economy of scale which is supposed to facilitate the traders and make them sure about the fair price of the product. Investopedia defines commodity exchange as “An entity, usually an incorporated non-prof...