Commodities

Definition of Commodities

Commodities are basic goods interchangeable between producers, such as grains, gold, beef, oil, and natural gas. As an asset class, they are highly speculative and are especially sensitive to economic shifts.

What Are the Types of Commodities?

Hard Commodities

Hard commodities are usually classified as those that are mined or extracted from the earth. These can include metals, ore, and petroleum (energy) products.

Soft Commodities

Soft commodities instead refer to those that are grown, such as agricultural products. These include wheat, cotton, coffee, sugar, soybeans, and other harvested items.

How to start commodity trading or investing?

To start trading in commodities, you need the following things: 

  • Trading with a reliable broker (Like Easy Trading Online)
  • Basic understanding of commodity markets
Commodity trading is generally used to hedge prices to prevent losses related to substantial price swings in essential commodities. Commodity trading is considered to be risky, so usually experienced traders and investors try their hands at commodity trading.

Start Your Trading Journey with 4 Easy Steps

1
Sign up
Click on “Register” and enter your details to sign up
2
Verify
Complete the verification process and your account will be activated immediately.
3
Deposit
Deposit funds via our fast and secure payment gateways.
4
Trading
Kickstart your first global
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