COMMODITIES

The commodities market is one of the foundations of the global trade system due to way to speculate on the financial markets. The origins of commodities trading can go back hundreds of years ago. Commodities are mostly traded in two forms – cash and forward – with the settlement (or delivery) dates being the main difference between the two. Cash-settled commodities have a settlement date that is usually in the near future, while forward commodities usually settle further in the future and therefore, tend to have wider spreads. The most popularly traded commodity sectors are energies (like oils and natural gas), metals (including gold, silver and copper) and soft commodities (such as cocoa, coffee and sugar and wheat).