What is commodity trading?

[Munareal]

Commodity trading is an alternative to trading stocks, bonds, and cryptocurrencies. There are different types of commodity trading which are hard, energy, livestock, and agriculture or soft commodity. The hard commodity trading involves trading in precious metals that are mined or extracted like gold, silver, copper, platinum, and energy commodities like oil and natural gas. Commodities such as wheat, sugar, corn, and cocoa are known as soft commodities or agriculture. Unlike hard commodities, they are products that are grown, rather than extracted or mined.

What do you think of commodity trading?

[Harihmawati]

commodities are raw materials, basic resources, agricultural, or mining products, such as iron ore, sugar, or grains like rice and wheat. Commodities can also be mass-produced unspecialized products such as chemicals and computer memory. There are can be bought and sold.

[Peter90]

Commodity trading is an alternative to trading stocks, bonds, and cryptocurrencies. There are different types of commodity trading which are hard, energy, livestock, and agriculture or soft commodity. The hard commodity trading involves trading in precious metals that are mined or extracted like gold, silver, copper, platinum, and energy commodities like oil and natural gas. Commodities such as wheat, sugar, corn, and cocoa are known as soft commodities or agriculture. Unlike hard commodities, they are products that are grown, rather than extracted or mined.

What do you think of commodity trading?

What do you think about commodity-backed cryptocurrencies?

Trading cryptos that represent commodities is considered commodity trading?

[Peter90]

I think I found the answer to my question
In the USA, cryptocurrencies are considered commodities because there is futures trading in cryptocurrencies.
I can't follow this justification, but the point is, in the USA cryptos - not only commodity-backed cryptos, but all cryptos - are considered commodities.

Thank you to forum member CebuBitcoin for having pointed to this article

US Judge Rules to Bring Alleged Cryptocurrency Scam Under CFTC Oversight

A U.S. federal district judge has ruled that an allegedly fraudulent crypto token meets the definition of a commodity, bringing the case under regulators’ purview, Finance Feeds reports September 27.

Judge Rya W. Zobel of the Massachusetts District Court ruled Sept. 25 against a motion to dismiss a case that had been launched by the Commodity Futures Trading Commission (CFTC) against an allegedly fraudulent crypto scheme known as “My Big Coin Pay Inc.,” reported to have been based in the state of Nevada.

Readmore: https://cointelegraph.com/news/us-judge-rules-to-bring-alleged-cryptocurrency-scam-under-cftc-oversight

The salient passage is this:
“Here, the amended complaint alleges that My Big Coin is a virtual currency and it is undisputed that there is futures trading in virtual currencies (specifically involving Bitcoin). That is sufficient, especially at the pleading stage, for plaintiff to allege that My Big Coin is a ‘commodity’ under the Act.”

[gunhell16]

Commodity trading is an alternative to trading stocks, bonds, and cryptocurrencies. There are different types of commodity trading which are hard, energy, livestock, and agriculture or soft commodity. The hard commodity trading involves trading in precious metals that are mined or extracted like gold, silver, copper, platinum, and energy commodities like oil and natural gas. Commodities such as wheat, sugar, corn, and cocoa are known as soft commodities or agriculture. Unlike hard commodities, they are products that are grown, rather than extracted or mined.

What do you think of commodity trading?

What do you think about commodity-backed cryptocurrencies?

Trading cryptos that represent commodities are considered commodity trading?

I don't have an idea about trading commodities. In fact, this was the first I heard about this thing.
And it's not clear to me yet, probably. this could be the traditional way of trading in Farming such as Rice, vegetables
Livestock and more something like that.

[Sammy9ce]

Futures contracts are the oldest way of investing in commodities. Thanks for the knowledge shared

[Chilwell]

I don't have an idea about trading commodities. In fact, this was the first I heard about this thing.
And it's not clear to me yet, probably. this could be the traditional way of trading in Farming such as Rice, vegetables
Livestock and more something like that.

Commodity means goods,
Trading means the act of buying and selling.
Then, commodity trading is the act of buying and selling of goods or natural resources either physically or virtually. It is also called goods or raw materials trading, it involves the buying and selling of:
1) food stuffs e.g Rice, corn, wheat, beans etc.
2) solid minerals e.g ore, gold etc.
3) fossil fuels e.g kerosine, petrol, diesel etc. Or any other useful products.

[Rruchi man]

What do you think of commodity trading?

There are traders who have the specialty trading commodities; others who have their specialty trading forex; and then their others who have their specialty in trading cryptocurrencies. I think the trading sector is diverse to accommodate everybody with different interests, and that's what makes it so beautiful. You do not need to be a commodity trader or concentrate on it if you are already a successful crypto trader or even forex trader; just focus on what you know best and increase your knowledge so that your profit can increase likewise.

[Agbe]

Commodity trading is an alternative to trading stocks, bonds, and cryptocurrencies. There are different types of commodity trading which are hard, energy, livestock, and agriculture or soft commodity. The hard commodity trading involves trading in precious metals that are mined or extracted like gold, silver, copper, platinum, and energy commodities like oil and natural gas. Commodities such as wheat, sugar, corn, and cocoa are known as soft commodities or agriculture. Unlike hard commodities, they are products that are grown, rather than extracted or mined.

What do you think of commodity trading?

Commodity trading is one big sector that has been there for a while and even though in most countries you have to get licensed before you can actually trade or deal on these commodities commodity trading is actually profitable because this is done as an international trade so it's usually transacted using the dollar,  a report by market watch shows that commodity like cocoa was one of the best performing in 2024 even out performing Bitcoin that is to show that commodity market is actually one good sector that people can invest and get a good return on investment

[Joeboy]

Commodity trading is an alternative to trading stocks, bonds, and cryptocurrencies. There are different types of commodity trading which are hard, energy, livestock, and agriculture or soft commodity. The hard commodity trading involves trading in precious metals that are mined or extracted like gold, silver, copper, platinum, and energy commodities like oil and natural gas. Commodities such as wheat, sugar, corn, and cocoa are known as soft commodities or agriculture. Unlike hard commodities, they are products that are grown, rather than extracted or mined.

What do you think of commodity trading?

Commodity trading is just one of those things that is highly dependent on timing and knowledge. It is simply the  buying and selling of physical goods(commodity)  like gold, oil as well as even agricultural products. What make this interesting is that the prices are not fixed, rather it changes from time to time and this changes are dependent on factors like  politics, weather as well as global demands.
To me this is a smart and strategic way to invest if and only if one understands the market and can handle the risks that are involved.  But if one make use of guesses here, it can feel a lot  loke gambling.
Commodity trading of course has the potential, but it is not something to jump into blindly.