Mammoney - Your Ultimate Guide to Personal Finance & Investing

Commodities trading is an exciting and potentially lucrative investment strategy that involves buying and selling raw materials or primary agricultural products. These commodities can range from precious metals like gold and silver to agricultural products like wheat and corn, and even energy resources like oil and natural gas. For beginners, understanding the basics of commodities trading and the various strategies involved is crucial for success. In this article, we will explore the fundamentals of commodities trading, the different types of commodities, and strategies for getting started. Understanding Commodities Trading Commodities trading involves the buying and selling of physical goods or financial instruments based on those goods. Unlike stocks and bonds, which represent ownership in a company or debt, commodities are tangible assets that can be physically delivered. Commodities trading can take place on various exchanges, such as the Chicago Mercantile Exchange (CME) or the N...