commodities trading
Buying raw materials
Commodities trading is the buying and selling of raw materials and primary goods—oil, gold, wheat, coffee, natural gas—typically through futures contracts on specialized exchanges.
Traders speculate on price movements or hedge against them: She made a fortune in commodities trading during the oil boom.
The market connects producers who want price stability with speculators willing to absorb risk.
- grainsSmall hard seeds
- producersThose who create goods
- supply chainProduct delivery infrastructure
- clearinghousesInstitutions settling mutual claims
- consumersThose who buy goods
futures contracts · oil futures · crude oil · hedging · speculators · arbitrage · options · natural gas · margin call · risk management · institutional investors · gold · brokers · derivatives · silver · coffee · hedge funds · market orders
commodities tradingstock trading
Exchanging company shares
bond trading · securities trading · equity investment · currency trading
commodities tradingsubsistence farming
Growing food for household
manufacturing · self-sufficiency · barter · personal use · hoarding
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