A commodity is a group of goods that are important in everyday life. Commodity can be in the form of food, Energy, metals etc. Do remember that a commodity is exchangeable by nature. Commodities can be moved from one place to another physically.
A commodity market allows you to trade in raw materials like sugar, gold, oil and spices, just to name a few. While the share market is for stocks, the commodity market allows investors and traders to take positions based on forecasted economic trends or arbitrage opportunities. When done smartly, commodity trading can be a profitable exercise. With Indian investors warming up to different financial assets for investments, commodities present a unique opportunity.