Commodity trading is where various commodities and their derivative products are bought and sold. A commodity is any raw material or primary agricultural product that can be bought or sold, whether wheat, gold, or crude oil, among many others. When you engage in commodity trading, such commodities can diversify your asset portfolio.
Some common categories are:
- Agricultural (e.g. chana, soya bean, jeera, rice, rubber)
- Metals (e.g. industrial metals like aluminium, copper and lead, and precious metals like gold and silver)
- Energy (e.g. natural gas, crude oil, coal)