Commodity Market

A commodity market is a centralized platform where raw materials or primary goods such as metals, energy, and agricultural products are bought and sold for future delivery. Commodities could be traded in two ways, through physical exchanges or over-the-counter (OTC) markets.

• Physical exchanges, such as the Chicago Mercantile Exchange (CME) or the Intercontinental Exchange (ICE), provide a platform for buyers and sellers to trade standardized contracts offline.
  

• OTC markets, on the other hand, do not have a centralized exchange. Instead, buyers and sellers negotiate and agree on the terms of the trade directly with each other. They are typically used for larger trades and more specialized commodities.

The price of commodities is determined by the forces of supply and demand, as well as by other factors such as weather conditions, geopolitical events, and global economic conditions.