A commodity exchange is a marketplace where commodities and related derivative contracts are standardized and traded. The commodity exchange can be split into these sub-markets:

• Derivatives market: this is where commodity exchanges allow futures, options, forwards, and other derivatives to be traded
• Spot market: this is where commodity exchanges allow buying and selling of commodities in real-time (on the spot), including cash contracts
  
  

In India, there are 4 commodity exchanges that are popular and widely turned to:

• Indian Commodity Exchange (ICEX)
• Multi Commodity Exchange of India (MCX)
• National Commodity & Derivatives Exchange Limited (NCDEX)
• National Multi Commodity Exchange of India (NMCX)
  
  

Within these exchanges, the most commonly traded commodities include:

• Crude oil
• Coffee
• Corn
• Cotton
• Gold
• Natural gas
• Silver
• Sugar
• Wheat

A bought-out deal is a stock offering where an investment bank buys the entire issue of shares from a company. In turn, the investment bank will attempt to sell the shares to other investors. A deal of this kind has two benefits:

• The company need not worry about subscription as the investment bank will purchase the entire offering
• The investment bank can negotiate with the company and get the shares at a discount
  
  

That said, there are risks to a bought out deal like:

• It is up to the investment bank to sell the shares to investors in order to recoup the principal or make a profit
• The investment bank also runs the risk of receiving no interest in the shares from other investors
• Guarantee purchase

If the issue size of the bought-out deal is large enough, the investment bank may team up with others to fulfil the purchase.

Candlesticks are technical charts used in trading to understand price movements. A candlestick chart will show the following information: There are three components to a call option:

• High (for the period)
• Low (for the period)
• Open price
• Closing price
  
  

The main body of the candle will be green if the closing price is higher than the opening price and red if the closing price is lower than the opening price.

Long green candles mean more investors and traders want to buy a stock. Long red candles mean more investors and traders want to exit a stock.