Raw materials or agricultural products that can be bought and sold in the global markets are called commodities. Gold, natural gas, copper, corn, coal, and crude oil are some of the important trading instruments in the commodities group. Commodities affect lives of billions of people around the world due to fluctuations in their prices.
There are two main ways to trade commodities. Commodities can be bought or sold via exchanges, or they can be traded using derivatives such as CFDs and spread bets. Globally, gold, silver, steel, aluminum, and iron are some of the most traded commodities in terms of volume. The list of most traded commodities also includes coffee, wheat and sugar. Total daily average turnover of Forex is above 5 trillion USD. This market is open 5 days a week, 24 hours a day and a large spectrum of currencies are constantly traded as long as people conduct business globally and try benefit from currency fluctuations.
Commodities’ prices fluctuate according to supply, demand and investor behavior. Also, natural disasters, war, civil unrest and strikes leading to major supply disruptions are fundamental drivers of change in the international oil prices.
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