What is a Commodity?

A commodity in CFD trading is a basic good used in commerce that is interchangeable with other goods of the same type. Commodities are typically raw material products that can be bought and sold, often classified as hard or soft commodities.
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Hard commodities are natural resources that are mined or extracted, such as crude oil, which is used to produce energy and various petroleum products.
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Soft commodities, on the other hand, are agricultural products or livestock, like wheat, coffee, and sugar, which are grown or raised.