commodity trading

Buying raw materials

Commodity trading is the buying and selling of raw materials and primary goods—oil, gold, wheat, coffee, natural gas—typically through futures contracts on exchanges.

Traders speculate on price movements or hedge against them: She made a fortune in commodity trading during the oil crisis.

The practice involves both physical commodities and financial instruments derived from them.

Related

gold · hedging · margin call · clearinghouses · crude oil · commodities · arbitrage · soybeans · CBOT · coffee · cotton · natural gas · derivatives · options · futures · institutional investors · contracts · spot market

Categories
Opposites
asset class

commodity tradingbond trading

Buying and selling fixed-income instruments

securities trading · currency trading · stock trading · options trading

tangibility of traded goods

commodity tradingsoftware licensing

Authorization to use programs

knowledge economy · service economy

economic activity type

commodity tradingmanufacturing

Industrial product creation

production · farming · mining · long-term investment · subsistence agriculture

Family

trading, commodity

Familiarity
Top 500,000
Profile
Used worldwide · Timeless · Abstract · Rated G