What is a Commodity?
There are many types of commodities, but in the financial investment market, bulk commodities are mainly traded. Commodities refer to commodities that are homogeneous, tradable and widely used as basic industrial raw materials. They are mainly divided into three categories, namely energy commodities, basic raw materials and agricultural and sideline products. Among them, the most familiar ones are crude oil, non-ferrous metals, steel, Agricultural products, iron ore, coal, etc. are all commodities. In the past few years, the world has paid increasing attention to existing limited resources, their relative investment value has also increased, and the transaction volume has also increased year by year. For example, gold, crude oil, etc., their price changes and related analysis have become daily concerns of the public. Many investors have learned to formulate their own investment strategies and invest through wealth-creating trading platforms.
Commodity investors generally have one of the following three characteristics:
Hedgers: Investors often buy and sell commodities to help manage risk because their movements tend to be opposite or unrelated to those of other investments.
Speculator: An investor who holds an opinion on a specific commodity and is willing to take risks in order to make a profit.
Broker: A company or individual who executes orders to buy or sell commodity contracts on behalf of investors.