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Commodities Trading: What Is It?

By Robin Hartill, CFPUpdated Feb 22, 2025 at 9:59 AM

Key Points

  • Commodity trading can diversify portfolios and hedge inflation but involves high volatility and complex factors.
  • Investors can trade commodities directly, through futures contracts, owning commodity stocks, or via ETFs and mutual funds.
  • Commodity prices are influenced by supply-demand changes, often affected by unpredictable events like weather or political issues.

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