What is Commodity?
All goods that are subject to trade are called commodities. When commodities are mentioned, precious metals such as Gold, Silver, Platinum, Copper etc., wheat, cotton, cocoa, corn etc. are subject to trade. energy resources such as agricultural products (agricultural commodities), oil and natural gas are understood.
What is Commodity Exchange (Market)?
Commodity Market, the market where commodities are traded is called the commodity market or commodity exchange.
The Chicago Mercantile Exchange (CBOT) is the world's largest commodity exchange where futures commodities change hands. Commodity exchanges in our country continue their operations under the Union of Chambers and Commodity Exchanges of Turkey.
Commodity exchange; It is divided into 2 as soft commodity and hard commodity. soft commodity; It is used for cultivated products such as coffee, cocoa, fruit, sugar, wheat, corn. Soft commodities are preferred by investors who want to be protected from possible price movements. Soft commodities may be more exposed to market fluctuations when there are uncontrollable developments such as weather and seasonal changes. Gold, petroleum chemicals and metals are classified as hard commodities.
There are 4 categories that can be invested in the Commodity Exchange:
– Precious Metals: There are products such as gold, silver, platinum and palladium.
– Industrial Metals: Copper, steel, aluminum, iron, nickel are the products with the highest transaction volume.
– Agricultural Products: Products with high transaction volume in global markets such as wheat, corn, cotton, soybean, cocoa, coffee, sugar, milk, live cattle, palm oil, rice, cardamom are included in this group.
– Energy Products: Instruments such as crude oil, brent oil, natural gas, heating oil, gasoline constitute this group.
What Factors Determine Commodity Prices?
Commodity prices fluctuate depending on political, economic or seasonal/periodic supply-demand balances. Therefore, it also allows speculative transactions.
How to Invest in Gold, Silver, Oil, Copper with Phase Forex?
Investors trading in Phase Forex have the privilege of investing in gold, silver, brent oil, crude oil, copper commodities with the advantage of low spread rate. You can test it with