Commodity Trading
Commodity trading involves buying and selling raw materials or primary agricultural products, such as oil, gold, wheat, or coffee, on exchanges or over-the-counter markets. It is a key component of global financial markets, enabling producers, consumers, and investors to hedge risks, speculate on price movements, and ensure supply chain stability. This practice spans physical trading of actual goods and financial derivatives like futures and options.
Developers should learn about commodity trading when building financial technology (fintech) applications, such as trading platforms, risk management systems, or data analytics tools for energy, agriculture, or metals markets. It is essential for roles in quantitative finance, algorithmic trading, or software development at commodity firms, where understanding market dynamics, pricing models, and regulatory aspects can enhance system design and functionality.