Trading involves high levels of risk
The term "commodities" on the online market refers to various natural raw materials used to produce goods, such as corn, wheat, soybean, cocoa, cotton, coffee and sugar.
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Trading involves high levels of risk
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Trading commodities is best suited for traders who:
- Prefer opening short-term positions.
- Want to hedge their portfolio.
- Can tolerate short-term losses in exchange for long-term gains.
Because people traded agricultural products long before the invention of currencies.
This is a symbol of the origin of the New York Stock Exchange as a place where tobacco was traded. It is further proof of how agricultural commodity trading has influenced modern trading.
As with most tradable assets, commodities are susceptible to supply and demand trends, but are also impacted by unpredictable situations such as unusual weather patterns, epidemics, and both natural and man-made disasters.
Apart from agricultural products, fossil fuels (such as natural gas and crude oil), precious metals, and, in some cases, even livestock are tradable commodities.
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