Commodity markets surge as trading volume skyrockets, impacting price discovery.
Commodity markets in India are becoming more popular, allowing people to make contracts for the future and protect against risks. Derivative markets are trading much more than spot markets. A study looked at twelve commodities on the MCX to see how prices are set in the spot and futures markets. They used a GARCH model to analyze this. The study also looked at how trading volume, inflation, and other economic factors affect prices in both markets.