Trading involves high levels of risk
The term Commodities in the online markets refers to various natural raw materials used to produce finished 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 loss for long-term gains.
Because people were trading agricultural products long before the invention of currencies.
This is a homage to the origin of the New York Stock exchange, as a place where tobacco was traded. This 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 affected by unpredictable situations such as unusual weather patterns, epidemics, and disasters both natural and human-made.
Apart from agricultural products, Fossil fuels (natural gas and crude oil), Precious Metals, and even Livestock in some cases are tradable commodities.
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