Commodity market: Difference between revisions

A '''commodity market''' is a [[Market (economics)|market]] that trades in the [[Primary sector of the economy|primary economic sector]] rather than manufactured products, such as [[Cocoa bean|cocoa]], fruit and [[sugar]]. Hard [[commodities]] are mined, such as [[gold]] and [[Crude oil|oil]]. Other forms of commodities include [[cryptocurrencies]]. <ref>{{cite web|url=http://www.investopedia.com/terms/s/softcommodity.asp#axzz2EGf9ZeC2 |title=Soft Commodity Definition |publisher=Investopedia |date=15 February 2009 |access-date=6 December 2012}}</ref> [[Futures contract]]s are the oldest way of investing in commodities.{{Citation needed|date=December 2020|reason=dubious, should clarify the affirmation}} Commodity markets can include physical trading and derivatives trading using [[spot price]]s, [[Forward contract|forwards]], [[futures contract|futures]], and [[option (finance)|options]] on futures.{{clarify|date=December 2020 |reason= "can include" Physical VS Paper}} Farmers have used a simple form of derivative trading in the commodity market for centuries for price risk management.<ref name=NFA2006>