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Thread: What is Commodity Trading?

  1. #1
    New Member
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    Oct 2012
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    What is Commodity Trading?

    Hi friends!
    Do you guys know what is commodity trading?
    I have this topic for my exam and I donít understand the topic in a better way.. Kindly explain about commodity trading with example if you know..



  2. #2
    Ohhh!!!
    Itís quiet natural that you donít understand some topics.. I have explained the topic.. Hope you understand..
    A commodity 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.
    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 are part of the national and international marketplace. The products are traded on exchanges, and the prices are based on supply and demand.
    There are a few ways to trade commodities. Futures (for future delivery) are contracts to buy or sell commodities at a specific price. Options are buying the right to buy or sell a commodity at a specific price and date.

  3. #3
    New Member
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    What is Commodity Trading

    Community trading involves The Buying and selling of Goods. There are many similaritys Between Community trading and trading activity. It is a market Where raw and Primary Products are exchanged.

  4. #4
    Junior Member
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    I would like to share simple definition for Commodity Trading, checkout!

    An investing policy in which goods are traded inspite of stocks. Merchandise traded is often goods of value, consistent in quality and produced in large volumes by different suppliers such as coffee, wheat and sugar. Trading is exaggerated by supply and demand, therefore limited supply causes a price increase while excess supply causes a price decrease.

  5. #5
    Junior Member
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    This is way of selling and buying Goods in a simple way btw in which stream you are studying?

  6. #6
    Junior Member
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    Sep 2012
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    Nice to see your reply! BTW am from Arts background….
    Did you find any mistakes in my explanation?? If so, kindly correct the errors.

  7. #7
    Senior Member
    Join Date
    Sep 2012
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    Hello Farheen,
    You have explained the definition with examples that is why it seems strange.

    To make the meaning simple, read this description!
    Commodity trading are markets where raw or primary products are exchanged.



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