A commodity is a collection of property or items which are essential in regular life, including food, energy, or metals. A commodity is alternate and exchangeable through nature. It may be categorized as each sort of movable goods that may be bought and sold, besides for actionable claims and money.

In general, commodities are labelled into 4 types:

1. Metals – silver, gold, platinum, and copper
2. Energy – crude oil, natural gas, gasoline, and heating oil
3. Agriculture – corn, beans, rice, wheat, etc.
4. Livestock and meat – eggs, pork, cattle, etc.

The great way to capitalize into commodities is thru a futures contract. It is an settlement to buy or sell a particular quantity of a commodity at a fixed rate at a later time. Futures are available in each commodity category. Traders use those contracts as prevention towards the risks related to the rate swing of a futures’ indirect exchange of products or raw material. Trading in commodities includes an excessive amount of risk for amateur investors.

More than a hundred commodities are traded withinside the commodity futures market. Out of those, 50+ commodities are actively traded. These consist of energy products, metals, agricultural commodities, etc.