WHAT ARE COMMODITIES?

Commodity market is the market which trades in a primary economic sector opposed to the manufactured products. Larger commodities are mined such a gold and oil. Investors are able to access over 50 major commodity markets in the world with financial transactions that increase which are out numbering physical trades in goods that are delivered.

A commodity index fund is a fund where assets are invested in financial instruments based on commodity indexes. Cash commodities refer to physical goods for instance crude oil, silver or gold that others are buying, selling or trading as distinguished from derivatives.

Electronic commodities such as the New York Exchange, most trading takes place in trading pits in face to face interactions that happen between deals and brokers in an open outcry trading.