Physical or virtual transactions of buying and selling involving raw or primary commodities
Part of a series on
Financial markets
Public market
Exchange · Securities
Bond market
Bond valuation
Corporate bond
Fixed income
Government bond
High-yield debt
Municipal bond
Securitization
Stock market
Common stock
Preferred stock
Registered share
Stock
Stock certificate
Stock exchange
Other markets
Derivatives
(Credit derivative
Futures exchange
Hybrid security)
Foreign exchange
(Currency
Exchange rate)
Commodity
Money
Real estate
Reinsurance
Over-the-counter (off-exchange)
Forwards
Options
Spot market
Swaps
Trading
Participants
Regulation
Clearing
Related areas
Banks and banking
Finance
corporate
personal
public
v
t
e
A commodity market is a market that trades in the primary economic sector rather than manufactured products, such as cocoa, fruit and sugar. Hard commodities are mined, such as gold and oil.[1] Futures contracts are the oldest way of investing in commodities.[citation needed] Commodity markets can include physical trading and derivatives trading using spot prices, forwards, futures, and options on futures.[clarification needed] Farmers have used a simple form of derivative trading in the commodity market for centuries for price risk management.[2]
A financial derivative is a financial instrument whose value is derived from a commodity termed an underlier.[3] Derivatives are either exchange-traded or over-the-counter (OTC). An increasing number of derivatives are traded via clearing houses some with central counterparty clearing, which provide clearing and settlement services on a futures exchange, as well as off-exchange in the OTC market.[4]
Derivatives such as futures contracts, Swaps (1970s–), and Exchange-traded Commodities (ETC) (2003–) have become the primary trading instruments in commodity markets. Futures are traded on regulated commodities exchanges. Over-the-counter (OTC) contracts are "privately negotiated bilateral contracts entered into between the contracting parties directly".[5][6]
Exchange-traded funds (ETFs) began to feature commodities in 2003. Gold ETFs are based on "electronic gold" that does not entail the ownership of physical bullion, with its added costs of insurance and storage in repositories such as the London bullion market. According to the World Gold Council, ETFs allow investors to be exposed to the gold market without the risk of price volatility associated with gold as a physical commodity.[7][8][notes 1]
^"Soft Commodity Definition". Investopedia. 15 February 2009. Retrieved 6 December 2012.
^
"Opportunities and Risk: an Educational Guide to Trading Futures and Options on Futures" (PDF). Chicago, Illinois: National Futures Association. 2006. p. 6.
^
O'Harrow, Robert (21 April 2010). "A primer on financial derivatives". Washington Post.
^"Understanding Derivatives: Markets and Infrastructure - Federal Reserve Bank of Chicago". Chicagofed.org. Retrieved 23 August 2018.
^
"The Regulation of Derivatives in Canada". Expert Panel. 2007.
^
Loder, Asjylyn (18 July 2010). "Commodity Manipulation May Be Easier to Prove After Overhaul". Bloomberg.
^
Bytom Lauricella (2 November 2009). "Gold Mutual Funds Vs. Gold ETFs: It Depends on the Goal". Wall Street Journal. Retrieved 3 October 2011.
^"The Future of Commodity ETFs". Morningstar. 25 August 2009. Archived from the original on 8 January 2017. Retrieved 3 October 2011.
Cite error: There are <ref group=notes> tags on this page, but the references will not show without a {{reflist|group=notes}} template (see the help page).
A commoditymarket is a market that trades in the primary economic sector rather than manufactured products, such as cocoa, fruit and sugar. Hard commodities...
economics, a commodity is an economic good, usually a resource, that specifically has full or substantial fungibility: that is, the market treats instances...
and precious metals, which are known in the financial markets as commodities. The term "market" is sometimes used for what are more strictly exchanges...
A commodities exchange is an exchange, or market, where various commodities are traded. Most commoditymarkets around the world trade in agricultural products...
Yiwu Market, is the primary wholesale market complex in Yiwu, Zhejiang, China. According to the World Bank, it is the world's largest small commodities market...
Multi Commodity Exchange of India Ltd (MCX) is a commodity exchange based in India. It was established in 2003 by the Government of India and is currently...
Commodity chemicals (or bulk commodities or bulk chemicals) are a group of chemicals that are made on a very large scale to satisfy global markets. The...
The following is a list of futures contracts on physically traded commodities. Symbol from Vitol Glencore International AG Trafigura Cargill Salam Investment...
Commodity money is money whose value comes from a commodity of which it is made. Commodity money consists of objects having value or use in themselves...
socialist commodity economy (or a socialist market economy) is contradictory. Other socialists believe the Chinese have embraced many elements of market capitalism...
used in business contexts to mean when the market for an existing product has become a commoditymarket, where products are interchangeable and there...
less. As short-term securities became a commodity, the money market became a component of the financial market for assets involved in short-term borrowing...
In Marxist philosophy, the term commodity fetishism describes the economic relationships of production and exchange as being social relationships that...
dynamic capital rules. Commoditymarket Securitization Financial engineering "ESMA data analysis values EU derivatives market at €660 trillion with central...
A commodity trading advisor (CTA) is US financial regulatory term for an individual or organization who is retained by a fund or individual client to...
financial instrument. Speculators are particularly common in the markets for stocks, bonds, commodity futures, currencies, fine art, collectibles, real estate...
expand derivatives trading business in the commoditymarket. It also has an IT services and research arm, JPX Market Innovation & Research, Inc. (JPXI), a...
Commodity exchange may refer to: Commodities exchange, any exchange where various commodities and derivatives products are traded. Commoditymarkets, for...
milled for flour or pressed for oil. Thus, the grain market is a major global commoditymarket that includes crops such as maize, rice, soybeans, wheat...
500, and Russell 1000, the company owns exchanges for financial and commoditymarkets, and operates 12 regulated exchanges and marketplaces. This includes...
A grey market or dark market (sometimes confused with the similar term "parallel market") is the trade of a commodity through distribution channels that...
by roasters, investors, and price speculators as a tradable commodity in commoditymarkets and exchange-traded funds. Coffee futures contracts for Grade...
cornering the market consists of obtaining sufficient control of a particular stock, commodity, or other asset in an attempt to manipulate the market price....
Exchange Board of India (SEBI) is the regulatory body for securities and commoditymarket in India under the administrative domain of Ministry of Finance within...
parties not yet known to each other. The asset transacted is usually a commodity or financial instrument. The predetermined price of the contract is known...
Commodity Futures Trading Commission (CFTC) is an independent agency of the US government created in 1974 that regulates the U.S. derivatives markets...
independent board of directors and provides a commodity exchange platform for market participants to trade in commodity derivatives. It is a government company...