Commodities trading involves buying and selling physical goods such as agricultural products (e.g. wheat, corn, soybeans), energy products (e.g. crude oil, natural gas), precious metals (e.g. gold, silver), and industrial metals (e.g. copper, aluminum).

Commodities are traded on various exchanges around the world, including the Chicago Mercantile Exchange (CME), the New York Mercantile Exchange (NYMEX), the London Metal Exchange (LME), and the Shanghai Futures Exchange (SHFE), among others.

Commodities trading can be used by producers and consumers of the underlying physical goods to manage their price risk. For example, a farmer can use the futures market to lock in a price for their crops, while a manufacturer can use the futures market to secure a price for the raw materials they need to produce their goods.

Commodities trading can also be used as a speculative investment by traders who are looking to profit from price movements in the market. However, commodities trading can be risky, as prices can be volatile and affected by factors such as geopolitical events, weather patterns, and supply and demand dynamics.