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Commodity TradingFrom gold to wheat to oil, commodity trading refers to the buying and selling of primary raw materials and goods via exchanges, over-the-counter deals, or physical spot markets for more immediate trades. Commodities are the building blocks of commerce: They're used to create just about every good that is bought or sold around the world. So it follows that the global commodity market is enormous, with tens of trillions of dollars changing hands in commodity trades each year. Long predating stock markets and even fiat currency, commodity trading is among humanity's oldest economic activities. It can be traced back to ancient Mesopotamia (around 4,000 to 4,500 years ago), when people documented agreements for future deliveries of agricultural materials on clay tablets. Commodity markets are typically sorted into four categories: energy (such as crude oil and natural gas), metals (such as gold and silver), livestock (such as live cattle), and agriculture (such as wheat and corn). Commodities often trade on specialized commodity exchanges, such as those within the Chicago Mercantile Exchange Group or the Intercontinental Exchange.Explore Commodity Trading

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Commodity trading is regulated by the CFTC to mitigate fraud and riskEstablished in 1974, the CFTC regulates these markets (including swaps, futures, and certain types of options) to protect market participants from fraud, ensure fair trading conditions, and generally reduce financial risk. USAFacts Prediction markets convinced regulators they're not gambling, but exchanging commodity futures contractsKalshi built a legal case that argues its yes/no bets on real-world events are futures contracts, and the relevant regulator—the Commodity Futures Trading Commission—agreed in 2020. Many states are now suing major prediction markets, arguing this legal case is faulty and obscures the true substance of the business: gambling. NPR Futures contracts are agreements to buy or sell a standardized asset at a specific future timeWhen it comes to commodity trading, these legally binding agreements tend to operate on a monthly basis. Futures contracts are typically traded on futures exchanges, like those operated by CME Group and the Intercontinental Exchange. CME Group

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