What are the best commodities to trade?
A commodity market facilitates trading in various commodities. It may be a spot or a derivatives market. In spot market, commodities are bought and sold for immediate delivery, whereas in derivatives market, various financial instruments based on commodities are traded. There are various types of commodities available to be traded in the market. Broadly, they are categorized as soft and hard commodities. Soft commodities A soft commodity is a general term that is used for commodities grown on agricultural farms, rather than mined from the earth or extracted from other substances. Corn, wheat, soybean, and sugar are some examples of soft commodities. Hard commodities A hard commodity is a type of commodity that is either mined from the earth or extracted from natural resources. Gold and crude oil are examples of hard commodities. Some hard commodities are also produced by refining other commodities. For example, gasoline is produced by refining crude oil. If you want to...