Commodity trading is done with materials such as iron ore, crude oil, and precious metals which are the raw materials that power the global economy. Offering unique and profitable opportunities for smart investors to profit from these commodities' ever-changing prices, but investing in commodities requires specialized knowledge and may carry more risk than conventional assets like stocks and bonds.

 

What Are Commodities?

Commodities are raw materials used to produce finished goods, including agricultural products, mineral ores and fossil fuels. Commodities are physical goods that are bought, sold and traded in markets and differ from stocks and bonds that exist only as financial contracts.

 

There are the main types of commodities:

• Energy. Commodities for energy include oil, natural gas, coal, ethanol, and sometimes even uranium. Energy commodities also include forms of renewable energy, like wind power and solar power.
• Metals. Metals include precious metals, like gold, silver, palladium, and platinum, as well as industrial metals, like iron ore, tin, copper, aluminum, and zinc.
• Agricultural products. Agricultural commodities include edible goods, such as cocoa, grain, sugar, and wheat, as well as non-edible products, such as cotton, palm oil, and rubber.

The prices of commodities change constantly depending on of supply and demand patterns that keep changing globally. Investors in the commodity market profit from supply and demand trends.

 

What Is Commodity Trading?

Commodity trading is the exchange of different commodities typically through futures contracts, that are based on the price of an underlying physical commodity. With the trading i.e buying or selling of these futures contracts, investors make bets on the expected future value of a given commodity. If it seems like the price of a commodity will go up, investors buy certain futures—or go long—and if the price of the commodity will fall, they sell off other futures—or go short.

Zortal is an innovative trading solution for global businesses and organizations, providing an efficient solution to automate numerous organizational processes including procurement, inventory, warehousing, and sales.

Our solution has been specifically designed to manage, computerize and automate all commodity trading business processes. Zortal helps with workforce management, payroll, and talent management functionalities, helping companies optimize their end-to-end business process.