Trading commodities is an ancient profession with an extended history than the trading of stocks and bonds. A commodity is a basic good used in commerce that is interchangeable with other goods of the same type.

For investors, commodities can be an important way to diversify their portfolio beyond traditional securities.

Because the prices of commodities tend to move in opposition to stocks, some investors also rely on commodities during periods of market volatility. The basic principles of supply and demand are what drive the commodities markets. Changes in supply impact the demand; low supply equals higher prices.