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Commodities are all around us and they affect our day to day lives. Commodities are usually decided into 3 groups:

1. Metals- there are two types: non-precious metals( like iron, steel, copper...) and precious metals( like gold, silver, platinum and palladium)

2. Agriculture- also called soft commodities, include coffee, cocoa, sugar, wheat

3. Energy- they generate energy, like crude oil, coal, natural gas

Commodities are traded either directly, in futures markets, or indirectly, in commodity trading, by buying or selling things related to commodities.

We know two types of participants in futures trading. Commertial users, who are directly taking place in the market and have selling contracts. And there are Speculators, who stay away from trading, only expecting commodity price changes.

The prices of commodities depend on Monsoon, international or government policies and technological advancements.

It is advised that users only have limited portions in commodities, as price can change rapidly.