Commodity Trading
Commodity trading involves buying and selling raw materials or primary products, such as gold, oil, natural gas, agriculture products, and metals. Commodities are essential resources used in the production of goods and services. Commodity trading typically takes place on regulated exchanges like the Chicago Mercantile Exchange (CME) or the London Metal Exchange (LME). Traders aim to profit from price movements driven by supply and demand dynamics, geopolitical events, natural disasters, and other economic factors.
Commodities are often classified into two main categories:
- Hard Commodities: These are natural resources that are mined or extracted, such as oil, metals (gold, silver, copper), and natural gas.
- Soft Commodities: These include agricultural products like wheat, coffee, sugar, and livestock.
