and the pork. The hard commodities on the other hand, are those which are extracted or mined from the earth, such as oils, rubber, gold. Markets for commodities enable buyers and sellers to purchase commodity products on a single liquid marketplace. These participants have the ability to ensure future output or demands by means of commodity derivatives. Arbitrageurs, investors, and the speculators are all active participants in these market.
Diversifying a portfolio can also be done with a wide variety of commodities. Certain commodities, including precious metals, have been thought to be the ideal hedge against inflation. Commodities law is the rules and regulations that are issued through the Commodity Futures Trading Commission. A few investors turn to commodities in moments of market volatility since the price of commodities often change in a way that is not the case with stocks. The trading of commodities was previously an exclusive area for professionals and required significant amounts in time and funds. Today, there are numerous options to trade commodities today. my8uuof3tu.