The commodity market is a market where traders buy and sell commodities. Commodities are raw materials or primary agricultural products.
Commodities futures contracts are agreements to buy or sell a raw material at a specific date in the future at a particular price. It specifies when the seller will deliver the asset. It also sets the price.
Futures trading offers a wide range of asset classes, with tight spreads and low trading costs, and significant levels of leverage that provide the potential for large profits on a relatively small amount of trading capital.
Just as SEBI regulates the stock market in India, SEBI also regulates commodity derivative markets since September 28, 2015.