Definition
Marketplaces where raw or primary products are bought and sold, either for immediate physical delivery (spot markets) or through futures contracts. These markets facilitate price discovery and risk management for agricultural products, energy resources, metals, and other natural resources.
Example Usage
"Farmers use commodity markets to lock in prices for their harvests months before actual delivery, providing financial certainty during the growing season.”
Related Terms
Financial MarketsFuturesSpot PricesCommodities ExchangeHard CommoditiesSoft CommoditiesHedging
Tags
CommoditiesPhysical MarketsNatural Resources
Course Module
Module 1: Introduction to Financial Markets