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Commodity — definition & meaning

A physical raw material traded on markets, like gold or oil.

A commodity is a basic raw good — such as gold, oil, natural gas, wheat or coffee — that is bought and sold on global markets.

Commodity prices swing with supply and demand, weather, geopolitics and the dollar. Retail traders usually access them via CFDs, futures or ETFs rather than taking physical delivery.

The information on Trding.io is for general information only and is not investment advice. Trading involves a real risk of losing money, and most retail traders lose. Never trade money you cannot afford to lose.

Related terms

Futures
A standardised contract to buy or sell an asset at a set future date and price.
CFD (contract for difference)
A leveraged contract to exchange the price change of an asset, without owning it.
ETF (exchange-traded fund)
A fund holding many assets that trades on an exchange like a share.
Volatility
How much and how quickly a price moves over time.
Forex (FX)
The global market for trading one currency against another.
Currency pair
Two currencies quoted together, showing the price of one in the other.

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