Option Investor
Glossary

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Commodity

A commodity is an article of commerce or a product that can be used for commerce. More specifically, a commodity can be a product that is traded on the commodities exchange. There are many types of commodities such as metals, agricultural products, petroleum, foreign currencies and financial instruments, just to name a few. Investors often buy and sell commodities through Futures Contracts. For the most part, commodities can be traded on quantity alone. Trading in commodities is widely viewed as a risky endeavor.