- Time Validity of product for being traded: In the stock market if an investor buys stock from any company then he can hold the stock in the demat account for a long time according to his choice. But in the commodity market, it is compulsory to sell the product at a fixed time after buying gold, oil silver or crude. In commodity markets, there are two options for trading which are Future trading and Options trading. Usually trading in future and option is from one month to 3 months. Which means if someone is dealing in a commodity, then he may need to complete it in 3 months. But in the stock market, there is no fixed time period or expiry date to sell the stock.
- Differences between income from stock and commodity: Another major difference between the stock and commodity market is that the trader has the benefit of dividends on the stock purchased in the stock market. While on the other hand, commodity market does not have any dividend benefit, the trader can profit or loss through trade only.
- The stock market is investment and commodity market is trading: In the stock, a market trader invests money through buying stock or shares, in which a trader can make the profit from dividend and capital.
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