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Commodities

Date Submitted: 10/22/2002 09:37:45
Length: 5 pages (1448 words)
Views: 130992

The financial term commodity is defined as a physical substance, such as food, grains, a and metals, which is interchangeable with other product of the same type, and which investors buy or sell, usually through future contracts. Or more generally, a product which trades on a commodity exchange; this would also include foreign currencies and financial instruments and indexes. When one speaks of a commodity, they can be referring to two types of this aspect …

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…who are trying to control the price of a commodity or speculators who are just looking to make the extra buck, commodites and futures offer something to everyone. It is a method for people, like you and I, to invest in tangible products that we feel are going to make a profit in the market. It is an exciting business that is always changing and is one that has sparked great interest in many people.

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