What are the unique features of national level commodity exchanges?
The unique features of national level commodity exchanges are: **They are demutualized, meaning thereby that they are run professionally and there is separation of management from ownership. The independent management does not have any trading interest in the commodities dealt with on the exchange. **They provide online platforms or screen based trading as distinct from the open outcry systems (ring trading) seen on conventional exchanges. This ensures transparency in operations as everyone has access to the same information. **They allow trading in a number of commodities and are hence multi-commodity exchanges. **They are national level exchanges which facilitate trading from anywhere in the country. This a corollary of being an online exchange. What are spot and futures prices? Spot price is the price in the cash market (where one buys and sells goods ‘on the spot’ just as we make purchases from a shop by paying cash) while future prices are prices of the same commodity at a future
