Commodity prices are highly volatile leading to higher risk in trading but also may generate higher returns. Although there are several mathematical tools to calculate historical and expected volatility, nevertheless, traders regularly perceive about volatility before carrying out actual trading. The present study deals-with the study of such perception. The survey of 100 randomly selected commodity traders from Ludhiana city was performed and their perception about volatility was enquired. Statistical significance at 5% was found in their agreement towards the fact that even if overall markets are calm, there are incidences of-high volatility in commodity markets as compared to other markets and this trend has been rising. This-increased volatility affects future returns, but also offer good opportunities for traders, especially if they-make use of technical analysis or derivatives.
Commodity, Traders, Volatility, Trader’s perception
