Commodities are the raw materials which stay in the foundation of manufacturing and production. They are the basic blocks of the international economy.

These natural resources are traded on specific exchanges all over the globe. There are two main types of commodities- soft and hard. Soft are mainly agriculture and hard commodities include metals, energy resources.

Commodities are mostly traded on specialized exchanges for particular markets. Also, commodities are traded as future contracts.So pairs agree on a future price and date of the asset. So investors are able to trade on commodities without being the owner of a certain asset.