Commodity Market
Definition of 'Commodity Market'A physical or virtual marketplace for buying, selling and trading raw or primary products. For investors' purposes there are currently about 50 major commodity markets worldwide that facilitate investment trade in nearly 100 primary commodities.Commodities are split into two types: hard and soft commodities. Hard commodities are typically natural resources that must be mined or extracted (gold, rubber, oil, etc.), whereas soft commodities are agricultural products or livestock (corn, wheat, coffee, sugar, soybeans, pork, etc.) |
|
Investopedia explains 'Commodity Market'There are numerous ways to invest in commodities. An investor can purchase stock in corporations whose business relies on commodities prices, or purchase mutual funds, index funds or exchange-traded funds (ETFs) that have a focus on commodities-related companies. The most direct way of investing in commodities is by buying into a futures contract. |
Related Definitions
Articles Of Interest
-
How To Invest In Commodities
Find out which futures, options or funds will be your perfect commodity portfolio fit. -
Canada's Commodity Currency: Oil And The Loonie
When the price of oil goes up, don't worry about how much gas is going to cost - get even by making a play on the Canadian dollar. -
Commodities: The Portfolio Hedge
These diverse asset classes can provide downside protection and upside potential. Find out how to use them. -
ETFs: How Did We Live Without Them?
These funds burst onto the scene in 1993 and have continued to provide new opportunities for investors since. -
Commodity Prices And Currency Movements
Find out which currencies are most affected by fluctuations in gold and oil prices, and improve your trading. -
Hotshots Needed For Commodity Trading Advisor Positions
If you can multi-task and you enjoy a good challenge, this lucrative career could be a perfect fit. -
Cashing In On A Commodities Boom
They're hard to predict, but commodities cycles provide valuable information for traders. -
Hedging With Puts And Calls
This trading strategy can reduce your risk - but only if you use it effectively. -
An Overview Of Commodities Trading
Foresight and careful observation are the keys to trading this market. -
Commodity Funds 101
These funds make investing in gold, oil or grain an easier prospect.