Commodity
Basic goods (oil, metals, etc.) that are interchangeable and traded in markets.
Detailed Description
Commodity
What are the two main types of commodities?
The two main types of commodities are hard commodities and soft commodities.
What are hard commodities?
Hard commodities are natural resources that must be mined or extracted, such as oil, gold, and metals.
What role do commodity markets play?
Commodity markets are platforms where commodities are traded, facilitating price discovery and providing liquidity.
What are commodity futures?
Commodity futures are contracts to buy or sell a specific quantity of a commodity at a predetermined price on a future date.
How can investing in commodities benefit a portfolio?
Investing in commodities can provide diversification, serve as a hedge against inflation, and offer profit opportunities during economic downturns.