Commodities refer to tangible goods that are actively traded on different commodity markets. These goods can be classified into two main categories: hard commodities and soft commodities.
Hard commodities encompass natural resources, such as oil, gold, and rubber, which are typically obtained through mining or extraction processes. On the other hand, soft commodities are agricultural products like coffee, wheat, cotton and sugar that are grown rather than mined.
When you trade commodities, you're buying or selling these raw materials in a marketplace, whether to hedge against price fluctuations or speculate on future price movements. Commodity trading offers a way for traders to diversify investment portfolios. Both hard and soft commodities can be traded via CFDs with Orbis Securities.