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Definition of 'Commodity'
1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often used as inputs in the production of other goods or services. The quality of a given commodity may differ slightly, but it is essentially uniform across producers. When they are traded on an exchange, commodities must also meet specified minimum standards, also known as a basis grade.
2. Any good exchanged during commerce, which includes goods traded on a commodity exchange.
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Investopedia explains 'Commodity'
1. The basic idea is that there is little differentiation between a commodity coming from one producer and the same commodity from another producer - a barrel of oil is basically the same product, regardless of the producer. Compare this to, say, electronics, where the quality and features of a given product will be completely different depending on the producer. Some traditional examples of commodities include grains, gold, beef, oil and natural gas. More recently, the definition has expanded to include financial products such as foreign currencies and indexes. Technological advances have also led to new types of commodities being exchanged in the marketplace: for example, cell phone minutes and bandwidth.
2. The sale and purchase of commodities is usually carried out through futures contracts on exchanges that standardize the quantity and minimum quality of the commodity being traded. For example, the Chicago Board of Trade stipulates that one wheat contract is for 5,000 bushels and also states what grades of wheat (e.g. No. 2 Northern Spring) can be used to satisfy the contract.
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Search results for 'Commodity'
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http://stocks.investopedia.com/stock-analysis/2011/A-Look-at-Commodity-ETFs-XLE-USO-GLD-SGG-DBA-DBE-JJC-LD-COW1219.aspx
The Great Recession shows why commodity ETFs are a great way to add diversity
to your portfolio. ... A Look at Commodity ETFs. Posted ...
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http://www.investopedia.com/articles/mutualfund/09/commodity-mutual-funds.asp
Commodity Funds 101. ... A Variety of Fund Types The generic label "commodity fund"
actually captures several distinct types of investments. ...
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http://stocks.investopedia.com/stock-analysis/2011/Enticing-Commodity-Stocks-For-Inflation-Protection-TCK-MOS-DBA-DBC0707.aspx
... seems imminent. Commodity stocks can help protect your cash value. ... Enticing
Commodity Stocks For Inflation Protection. Posted: Jul ...
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http://www.investopedia.com/articles/forex/11/capturing-commodity-fluctuations.asp
For individual or retail investors looking to gain exposure to hot commodity trends,
the foreign exchange markets provide the answer. Continue to Site ยป. ...
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http://www.investopedia.com/articles/forex/10/trading-currency-commodity-correlations.asp
... How To Trade Currency And Commodity Correlations. ... YTD (2010), Daily. Source: TD
Ameritrade. Currency commodity relationships may change over time. ...
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http://www.investopedia.com/articles/forex/09/canadian-dollar-loonie-commodity-oil.asp
Canada's Commodity Currency: Oil And The Loonie. ... If you've ever heard the term
"commodity currency," the Canadian dollar is the embodiment of that term. ...
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http://www.investopedia.com/articles/professionaleducation/08/commodity-traders.asp
Hotshots Needed For Commodity Trading Advisor Positions. October ... Education.
So, you want to become a Commodity Trading Advisor (CTA). ...
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http://www.investopedia.com/articles/forex/06/CommodityCurrencies.asp
Commodity Prices And Currency Movements. ... Bottom line: It never hurts to be more informed
about commodity prices and how they drive currency movements. ...
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http://www.investopedia.com/articles/optioninvestor/07/soft_market.asp
Trading The Soft Commodity Markets. ... Because the soft commodity markets are traded
at an exchange, the clearing services ensure no default risk. ...
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http://www.investopedia.com/articles/06/Water.asp
Water: The Ultimate Commodity. ... Why the interest in water? Like gold and oil,
water is a commodity - and it happens to be rather scarce. ...
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