0
In addition commodity items in financial investment are raw materials with rich economic monetary value like:
- Gold
- Silver
- Copper
- Oil (Crude or Brent)
- US Coffea
- Wheat
- London Cocoa
- Orange Juice
- US Soyabean and others
These items are sold on the Commodity market through online Forex
A commodity, in the financial market context, will normally mean anything sold as contracts for a particular quantity on a commodity exchange somewhere in the world. Many commodity exchanges are electronic (or online) some still have a "floor" where the contracts are auctioned. Normally a producer will create a contract to deliver x number of units on x date, 5000 bushels of corn on Dec 2013. The producer has the actual commodity.
The commodity might be oil, gasoline, diesel fuels, natural gas, orange juice, wheat, corn, barley, gold, silver, dollar, yen, marks anything with a value that changes and comes from multiple suppliers (mines, oil driller, farmers, banks, governments, etc,)
Someone, either a speculator or an actual user of the corn will bid on that contract. If something happens to make that corn more valuable (maybe a bad crop year) the speculator might sell it at a higher price since they don't need the corn. A consumer, perhaps a bakery, need the real corn and bought the corn before the price went up so they benefit from the lower price they got earlier. It get very complicated with options to purchase, etc. Many commodity markets will respond quickly to news of freezes, oil discoveries, refinery capacity, less planted and many other factors. One purpose of the commodity exchange system is to keep the price from making wide swings on a daily basis.
Add your answer:
Earn +20 pts
Why is lumber considered a commodity?
A commodity is any item which can fufuill a market desire or need. Lumber is considered a commodity because it can be bought and sold to fufill a desire or need in the economy.
What does commodity gold mean?
Gold is a commodity that can be sold and traded, just like any other commodity. Gold is considered a hard commodity because it is extracted from mining, instead of being grown.
Product that is considered the same no matter who makes it or sells it?
Commodity
Milk is considered a commodity because it is which of the following?
the same product regardless who sells it
Is milk a commodity or a product?
commodity
Why is lumber considered a commodity?
A commodity is any item which can fufuill a market desire or need. Lumber is considered a commodity because it can be bought and sold to fufill a desire or need in the economy.
What does commodity gold mean?
Gold is a commodity that can be sold and traded, just like any other commodity. Gold is considered a hard commodity because it is extracted from mining, instead of being grown.
Is a television considered a commodity?
Yes, a television can be considered an example of a commidity. However, it's not a commodity in the stock market meaning of the term. A TV cannot be traded like a stock.
Product that is considered the same no matter who makes it or sells it?
Commodity
In the US oil is considered what?
Not sure exactly what the question means, but oil is considered a commodity.
Milk is considered a commodity because it is which of the following?
the same product regardless who sells it
Is a knife a commodity?
Yes, a knife can be considered a commodity as it is a widely available product that can be bought and sold in markets.
Is water the most important commodity?
Water is the most important commodity, without it life cannot be sustained.
Why is milk considered a commodity?
A commodity is something sold primarily on price rather than on some characteristic of the product. Because non-organic cow's milk is pretty much the same no matter where you get it, it is sold primarily on price and is therefore considered a commodity. Specialty milks--organic, lactose-free, flavored, from Jersey cattle--are sold on a particular characteristic of the product, so they're not commodities.
4 similarities between money & commodity?
What is the difference between money and commodity? Commodity money is a sort of money that is considered as a present good. Whereas, fiat money is a future obligation as it is simply a promise to pay in the future. Payment is never made when it comes to fiat money, instead it is only discharged. But commodity money, on the other hand, completes the transaction.
Which is the largest commodity exchange for commodity market?
Oil is that commodity.
Is milk a commodity or a product?
commodity
