Excluded Commodity

DEFINITION of 'Excluded Commodity'

A commodity that is not susceptible to measures of influence or manipulation. Excluded commodities include most financial products and any relevant event associated with the commodity that is outside the control of any interested party. Excluded commodities can also include intangible assets.

BREAKING DOWN 'Excluded Commodity'

Excluded commodities are created for assets with no cash market. When an investor trades interest or exchange rate futures, currency contracts or derivatives, that person is trading with excluded commodities. Because many of these products are large in scale, such as derivatives on economic indicators or weather, they are considered beyond the influence of interested investors. These commodities are called excluded because they are exempt from regulation when exchanged between eligible contract participants and are not transacted on an official trading facility.

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