What is commodity?
Commodity is a type of goods which are standardized and interchangeable with other commodities of the same kind. Commodities can be traded in bulk on an exchange or over-the-counter market, and they typically represent a basic raw material or product used in commerce.
What is commodity market?
The Commodity Market is a global market for trading in the primary economic sector, which involves the buying and selling of raw materials, such as agricultural products, minerals and energy sources. It is an important source of income for many countries around the world as commodities are traded in large volumes and prices can fluctuate significantly due to factors like supply and demand.
How to trade in commodity market?
In order to gain access to the commodity markets, investors need to open an account with a brokerage firm that enables trading in commodities futures contracts. These contracts are agreements between a buyer and seller to purchase or sell a specified amount of a given commodity at an agreed upon price on or before a specific date in the future. Once an account is opened with the broker, traders can enter buy/sell orders through their broker’s platform.