What are commodities?

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โˆ™ 2014-03-10 16:11:14

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A Commodity is an item traded strictly on price. This can be anything--for instance, Windows PCs are a commodity item. When a company wants to buy some computers, they decide how much RAM, how much disk space, the size of the monitor and so on, and then they usually buy the cheapest PC that meets all those specs.

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Bulk products, such as metal, grain, or food that are traded on the commodities exchanges.

Commodities are objects that start of the planet like fruit juice, wheat, cattle, gold and oil. folks obtain and sell commodities supported speculation.
In a commodities market, all vendors of a product are selling the exact same thing. Wheat is wheat, corn is corn, lead is lead and so on.

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