Commodity Markets

Commodity Markets

The global nature of the commodity markets makes them extremely powerful as an investor’s tool. Commodity markets are international markets where a commodity is traded that is related to other commodities, making them very liquid. There is also an enormous inter-bank system that links all commodity markets, facilitating transactions that need to be executed within…

Risk Factors of Commodities Trading

A commodity market is simply a market which trades in the main economic sector instead of specific manufactured goods, for example, sugar, cocoa and milk. Soft commodities are generally mined, including oil and gold. More recently, financial institutions have begun to trade in financial futures contracts as well. Financial futures involve borrowing funds and therefore…