Commodities are tangible goods or raw materials such as gold, oil, silver, wheat, and coffee, traded in both physical and derivative markets. They are often used for hedging against inflation and economic uncertainty, making them a popular choice for diversification. Commodity prices are influenced by supply and demand, geopolitical events, weather, and macroeconomic trends. Traders can access Commodities through Futures, Options, and CFDs.
Example:
An investor gains exposure to gold or crude oil through futures contracts rather than purchasing physical materials.
