Commodity trading involves buying, selling, or exchanging raw materials or primary agricultural products, often standardized and interchangeable with other goods of the same type.

These commodities include items like metals, energy resources, agricultural produce, and more. Traders speculate on price movements, seeking to profit from fluctuations in supply and demand, influenced by various factors like weather, geopolitical events, and economic conditions. Commodity markets can be physical, where goods are physically delivered, or financial, involving contracts that settle with cash. It’s a vital part of global trade, aiding producers, consumers, and investors in managing risk and price discovery.