WHAT IS AN EXCHANGE?

An exchange is a marketplace where securities, commodities, derivatives and other financial instruments are traded by customers. India to launch first ever Coal Trading Exchange
The core function of an exchange marketplace is to ensure fair and orderly trading and the efficient circulation of price information for any securities trading on that exchange.
An exchange market may be a physical location where traders (customers) meet to conduct business or an electronic platform.

India to launch first ever Coal Trading Exchange

Trading is increasingly being conducted on electronic exchanges (Computerised Trading).

Similarly there are exchanges where Commodities are exchanged on online platforms.

MULTI COMMODITY EXCHANGE OF INDIA (MCX)

  • Energy: Crude Oil, Crude Oil Mini, Brent Crude Oil, Natural Gas
  • Metal: Aluminium, Aluminium Mini, Copper, Copper Mini, Lead, Lead Mini, Nickel, Nickel Mini, Zinc, Zinc Mini, Brass
  • Bullion: Gold, Gold Mini, Gold Guinea, Gold Petal, Gold Petal (New Delhi), Gold Global, Silver, Silver Mini, Silver Micro, Silver 1000
  • Agricultural Commodities: Cardamom, Cotton, Crude Palm Oil, Kapas, Mentha Oil, Castorseed, RBD Palmolien, Black Pepper

NATIONAL COMMODITY AND DERIVATES EXCHANGE (NCDEX)

India to launch first ever Coal Trading Exchange
India to launch first ever Coal Trading Exchange

By this, the Government monopoly in the sector will be completely removed and
Liberal entries will be allowed so that more and more general public can participate.
Now, more private players will come to the coal mining sector if large number of buyers are there in market.
So I have already mentioned that online exchange helps in bringing more buyers and traders.

HOW IT WILL HELP INDIA?

The country’s coal import reduced by 20% to 18.93 million tonnes (MT) in May 2020.
The government is planning to bring the country’s coal imports to zero by 2023-24• India to launch first ever Coal Trading Exchange