Commodities are basic resources such as oil, gold, silver, agricultural products, and metals, traded on specialized exchanges. Investors can buy and sell commodities directly or through derivatives like futures and options. Commodity prices depend on global supply and demand, political situations, and natural disasters. Trading commodities helps diversify portfolios and provides protection against inflation. Popular commodity exchanges include the Chicago Mercantile Exchange (CME) and the London Metal Exchange (LME). Investors often use commodities as a tool for hedging risks or for speculative profit.
Commodity trading on the financial market involves buying and selling contracts for resources such as oil, gold, gas, and agricultural products. The primary instruments are futures, options, and contracts for difference (CFDs), which allow traders to speculate on price changes without physical delivery of the asset. Commodity prices are influenced by global economic conditions, geopolitics, and natural factors, making the market volatile. Investors use commodities to diversify their portfolios and hedge against risks associated with inflation or economic changes. Successful trading requires an analysis of global trends and an understanding of supply and demand for specific commodities. This type of trading is suitable for both speculative strategies and long-term investments.