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What is commodity?

A commodity is a reasonably interchangeable good or material, bought and sold freely as an article of commerce. Commodities include agricultural products, metals, and fuels. They are traded in bulk on a commodity exchange or spot market.

 

Commodity quality

The quality of a given commodity may differ slightly, but it is essentially uniform across producers. Investors and traders can buy and sell commodities directly in the spot  market or via derivatives such as futures and options.