Review:
Commodity Trading
overall review score: 3.5
⭐⭐⭐⭐
score is between 0 and 5
Commodity trading refers to the buying, selling, and exchange of raw materials or primary agricultural products such as gold, oil, wheat, and coffee.
Key Features
- Speculation on future prices
- Hedging against price fluctuations
- Investing in physical commodities
- Trading via futures contracts or options
Pros
- Potential for high returns
- Diversification of investment portfolio
- Hedging against inflation
Cons
- High risk due to price volatility
- Dependence on global market conditions
- Complexity of market analysis