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The best way to think of commodities is as the materials and products that are used by human beings to build the world we live in. Commodities incorporate agricultural products, metals and energy. Combined, it is the three things that make it possible for the world we live in to be exactly as it is today.

There are certain criteria commodities must meet in order to be traded – many important commodities cannot be traded because they are not tracked by a futures contract. One example being uranium. Commodities must also be deliverable in a physical sense, either by weight or volume. Crude oil is considered a deliverable asset because it is measured and traded in barrels.

The commodities traders have access to all have an extremely active market and are constantly being bought and sold between traders all over the world. The commodities market in general has the potential to be extremely liquid and gives traders the opportunity to make healthy returns – if of course they make the right moves.