Commodity Trading

Commodities are products that are found naturally or are grown. Gold, lumber, cattle, platinum, wheat, cotton, orange juice, oil, sugar and pork bellies are all commodities. Commodities trading is a sophisticated form of investing.
It is similar to stock trading but instead of buying and selling shares of companies, an investor buys and sells commodities. Like stocks, commodities are traded on exchanges where buyers and sellers can work together to either get the products they need or to make a profit from the fluctuating prices.

Many industries need commodities to run their business and buy and sell commodities in the marketplace. For example, clothing manufacturers need cotton, builders need lumber, and restaurants and supermarkets need beef.

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Last Updated on : 27th June 2013

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