Commodity Market

What is Commodity Market?

1:- A commodity market is a market that trades in the primary economic sector rather than
manufactured products, such as cocoa, fruit and sugar. Hard commodities are mined, such as gold and
oil. Investors access about 50 major commodity markets worldwide with purely financial transactions
increasingly outnumbering physical trades in which goods are delivered. Futures contracts are the oldest
way of investing in commodities. Futures are secured by physical assets. Commodity markets can
include physical trading and derivatives trading using spot prices, forwards, futures, and options on
futures. Farmers have used a simple form of derivative trading in the commodity market for centuries
for price risk management. wiki

2:- A commodity market is a physical or virtual marketplace for buying, selling, and trading raw or
primary products. There are currently about 50 major commodity markets worldwide that facilitate
trade in approximately 100 primary commodities. Investopedia

3:- Commodity exchanges operate in many countries around the globe, providing a platform to buyers
and sellers for trade of commodities. Some of these commodity exchanges, having a long history and
offering diverse products along with efficient and cost effective trading platforms, have become
international/regional hubs. Leveraging upon the use of information technology, these exchanges offer
the ease of trading irrespective of geographical location and time zone. While exchanges like Inter
Continental Exchange (ICE), Chicago Mercantile Exchange (CME), Dubai Gold & Commodity Exchange are
globally well known, exchanges of smaller scale operate in other countries as well. Sbp

4:- A commodity market is a place where buyers and sellers can trade any homogenous good in bulk.
Grain, precious metals, electricity, oil, beef, orange juice and natural gas are traditional examples of
commodities, but foreign currencies, emissions credits, bandwidth, and certain financial instruments are
also part of today's commodity markets.

According to the New York Mercantile Exchange: "A market will flourish for almost any commodity as
long as there is an active pool of buyers and sellers. There is no telling what will lubricate the wheels of
commerce -- cat pelts were once a hot item in St. Louis, and today dried cocoons are a major exchange-
traded commodity in Japan."

To be considered a commodity, an item must satisfy three conditions: It must be standardized, and for
agricultural and industrial commodities it must be in a "raw" state; it must be usable (i.e., have a shelf
life) upon delivery; and its price must vary enough to justify creating a market for the item.
Investinganswer

5:- Commodity Market is a place where in a wide range of products such as precious metals, crude oil,
coffee, pulses etc are traded. We offer information regarding commodity market live rates, silver
commodity price, gold commodity price, price of crude oil, copper etc. You can have access to spot and
future prices of various commodities. The top gainers and losers among the stocks for the particular day
can be known. You can infer the price variations that happened throughout the day through the graphs.
Get live status of all the commodities and also get to know the most active contract by value.
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