CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 87.41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Scan to Download iOS&Android APP

What is a commodity market?

Commodity Market
Share this article

A commodity market is a marketplace where traders can buy and sell primary economic sector goods, either on the spot market or the futures market.

Where have you heard about commodity market?

If you've ever traded hard commodities (natural mined resources like gold or rubber) or soft commodities (largely agricultural products, like grains or livestock), you've probably done so on a commodity market.

What you need to know about commodity market.

Commodity market works worldwide, like the London Metal Exchange and the Toyko Commodity Exchange. The major American commodity markets are the New York Board of Trade and the New York Stock Exchange. Commodity markets also function regionally, as with the Minneapolis Grain Exchange.

As with most financial markets, commodity market is regulated. In the US, the regulatory board is the Commodity Futures Trading Commission. In the European Union, the Markets in Financial Instruments Directive regulates operations, while the European Securities and Markets Authority sets position limits on commodity derivatives.

Find out more about commodity market.

The most common method of trade in a commodity market is through a futures contract.

New to trading? Learn to trade with Capital.com

Latest Articles

View all articles

Still looking for a broker you can trust?

Join the 480.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading