What is the Commodity Market? Types of commodity markets

---

---

Commodity Market is a physical or virtual market to buy, sell and trade crude products like oil, gold or coffee.

Commodity market

Commodity market in English is Commodity Market.

The commodity market is a physical or virtual market to buy, sell and trade raw or primary products. Currently, there are about 50 major commodity markets in the world, facilitating trade activities of about 100 main commodities.

Goods are divided into two categories: hard goods and soft goods. Hard goods are often natural resources that have to be mined or mined, such as gold, rubber and oil, while soft goods are agricultural or livestock products such as corn, wheat, coffee, sugar, soybeans. and pork.

How commodity markets work

People can invest in goods in many ways. Investors can buy stocks in corporations that depend on commodity prices or buy mutual funds, index funds or ETF investments focused on commodity-related companies.

The most direct way to invest in goods is to trade futures. A futures contract requires the owner to buy or sell a commodity at a predetermined price on the future delivery date.

Types of commodity markets

Major US commodity exchanges are located in Chicago and New York, with several exchanges in other locations throughout the United States. The Chicago Trade Commission (CBOT) was established in Chicago in 1848.

Commodities traded on CBOT include corn, gold, silver, soybeans, wheat, oats, rice and ethanol. The Chicago Exchange (CME) trades commodities such as milk, butter, fattened cattle, cattle, pork, lean pigs and timber.

The London Metal Exchange and the Tokyo Commodity Exchange are prominent international commodity exchanges.

Goods are mainly traded electronically; However, some US exchanges still use the auction method. Commodity trading done outside the operation of exchanges is called a decentralized trading market.

Requirements for commodity markets

In the US, the Commodity Futures Trading Commission (CFTC) controls the futures market and the options market. The goal of the CFTC is to promote competitive, efficient and transparent markets, helping to protect consumers from fraud, manipulation and unethical behavior.

The regulation of the commodity market has continued to be noticed after the four leading investment banks were caught up in an investigation of precious metal manipulation in 2014.

(According to investopedia)

Source: vietnambiz.vn/thi-truong-hang-hoa-commodity-market-la-gi-cac-loai-thi-truong-hang-hoa-20191024120752809.htm

LEC GROUP

Head Office: Road 4, Phu My 1 Industrial Zone, Phu My Ward, Phu My Town, Ba Ria - Vung Tau, Vietnam.

Add: The Galleria Office Building, 59 Hanoi Highway, Thao Dien Ward, District 2, Ho Chi Minh City.

Hotline: (+84) 909 800 136 & (+84) 909 455 136.

Email: info@lecvietnam.com & thao.nguyen@lecvietnam.com

Website: https://lecvietnam.com/

---

---