Commodity trading involves buying and selling physical or derivative contracts of raw materials such as gold, silver, crude oil, natural gas, agricultural products, and base metals. It offers traders and investors an effective way to diversify their portfolios beyond traditional equity markets, as commodity prices often move independently of stocks.

Commodity markets are influenced by global factors like supply and demand, geopolitical events, weather conditions, and economic data, creating frequent trading opportunities. With features such as high liquidity, extended trading hours, and margin facilities, commodity trading allows participants to capitalize on price fluctuations while efficiently managing capital. Whether used for hedging against inflation or for active trading, commodity trading plays a vital role in building balanced and resilient investment strategies.