How do commodity market works ?

Indian markets have recently thrown open a new avenue for retail investors and traders to participate: commodity derivatives. For those who want to diversify their portfolios beyond shares, bonds and real estate, commodities is the best option.
The commodities market works just like any other market. It is a physical or a virtual space, where one can buy, sell or trade various commodities at current or future date. A lot of share tips research firms advice their clients to trade in commodity market if they have a decent amount investment.
Commodities, whether they are related to food, energy or metals, are an important part of everyday life.Commodities can be an important way to diversify a portfolio beyond traditional securities.
Characteristics of Commodities
Basic economic principles of supply and demand typically drive the commodities markets: lower supply drives up demand, which equals higher prices, and vice versa. On the demand side, global economic development and technological advances often have a less dramatic, but important effect on prices.Commodities can be traded in various types like, Metals (such as gold, silver, platinum and copper),Energy (such as crude oil, heating oil, natural gas and gasoline),Agricultural (including corn, soybeans, wheat, rice, cocoa, coffee, cotton and sugar), etc.
Commodity market fetches you a great profit, even at a small gain. Even though the commodity market has lower chances of loss. Traders should prefer live mcx tips for better gains.