Learn Commodities with CFI

Topic Overview

Commodities are another class of assets just like stocks or bonds and physical commodities, as well as commodity derivatives can be actively bought and sold. Therefore, commodities trading is an important component of capital markets and allows producers and consumers of commodities to hedge their exposures efficiently. Commodities trading also allows for market participants to invest and speculate on commodity prices, while providing diversification beyond traditional securities. Lastly, spread trading in commodities allows sophisticated investors to take advantage of mispricing opportunities for near riskless profits so understanding them is essential to a career in capital markets. Read more
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Find the right Commodities course

With a focus on finance professionals, CFI offers commodities courses that contribute to a comprehensive understanding of capital markets and securities. These courses may be beneficial for students on a path to asset management, treasury, sales and trading, and other capital markets careers that include commodities. Courses may be used for the Capital Markets & Securities Analyst (CMSA)® certification.

Top Commodities Courses

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Discover Free Commodities Resources

Explore all of CFI's Commodities learning and development resources.

Quote-Driven Market

A secondary market trading structure where investors interact with dealers
commodities fixed-income capital-markets articles

Reverse Cash and Carry Arbitrage

A market-neutral strategy that seeks to take advantage of market inefficiencies between a commodity's spot price and its future price
commodities derivatives capital-markets articles

On-Balance Volume Indicator (OBV)

A technical indicator of momentum that utilizes the positive or negative flow of the volume of trading
commodities equities capital-markets articles

Quoted Price

The most recent – or last – price at which a financial asset such as stock, bond or commodity, has traded
commodities derivatives equities fixed-income capital-markets articles

Hard Assets

Physical or tangible assets that hold value and are normally held for the long term
commercial-lending commercial-real-estate commodities articles

Safe Haven

An investment that is anticipated to maintain or increase in value during times of economic downturn
commodities risk-management capital-markets articles

Spot Market

A financial market where financial instruments and commodities are traded for instantaneous delivery
commodities foreign-exchange wealth-management capital-markets articles

Quality of Security

Factors to consider when picking stocks to invest in
commodities equities fixed-income wealth-management capital-markets articles

Krugerrands

Gold bullion coins minted in South Africa
commodities articles

Depth of Market (DOM)

A window that displays the real-time market activity at different price levels in a security or currency market
commodities derivatives equities fixed-income foreign-exchange capital-markets articles

Auction Market

A market where the price is determined by the highest price the buyer is willing to pay (bids), and the lowest price the seller is...
commodities derivatives equities fixed-income foreign-exchange capital-markets articles

New York Board of Trade (NYBOT)

A physical commodity futures exchange located in New York City
commodities derivatives articles

Why Learn Commodities with CFI?

As a leading provider of certification programs and courses focused on finance, CFI gives you the tools you need for a future in finance. All programs are designed with the help of professional Wall Street trainers with over 20 years of experience preparing new hires for their roles in global investment banks.

Using a combination of theory and application, our courses maximize learning and retention to ensure you grasp the concepts necessary for your future career. All programs are online, flexible, and self-paced, so you can work at any time, from anywhere.

Over 75% of CFI learners report improved productivity or competency within weeks.

With our Commodities course, you can learn:

What are the various classes of commodities and their key features
What makes commodities tradeable
How commodities are traded in the capital markets using futures and options
What are the key drivers of commodities prices
Understand commodity spreads and common spread trading strategies
Who trades commodities and why?

Who should take these courses?

Our commodities courses are ideal for students and finance professionals interested in commodities trading strategies and derivatives. Courses provide a comprehensive overview of commodities trading and investing to prepare you for a future career in investment banking, sales and trading, treasury, or other areas of finance.

Investment professionals

Management consultants

Financial analysts

Registered Provider: National Association of State Boards of Accountancy

All courses are accredited by the Better Business Bureau (BBB), CPA Institutions in Canada, and the National Association of State Boards of Accountancy (NASBA) in the US. Most courses qualify for verified CPE credits for CPA charter holders.

Courses include video lessons, quizzes, and final assessments.

Frequently Asked Questions

If you haven’t found your answer from our FAQ, please send us a message.
What are Commodities?

Commodities are uniform, raw materials that are consumed directly or used as building blocks for other products, such as fruit, livestock, nickel, gold, and oil. Futures contracts are the oldest way of investing in commodities.

What is Investing in a Commodity?

Investing in a commodity can be accomplished in various ways, including purchasing varying amounts of physical raw commodities or investing through futures contracts or exchange-traded products (ETPs). Both investments are volatile and recommended for experienced investors only. Another option is to gain exposure to commodities in mutual funds that invest in commodity-related businesses, such as an oil and gas fund.

What is a Commodity Trader?

A commodity trader is an individual or business that invests in physical commodities like agricultural products or oil. Commodities markets trade in the primary economic sector, such as industries that collect natural resources but also in energy, livestock, and metals. While most commodity trading involves commodity futures contracts, physical trading and derivatives trading are common.

What are the Top 10 Most Traded Commodities?
  1. Brent Crude Oil
  2. Steel
  3. WTI Crude Oil
  4. Soybeans
  5. Iron
  6. Corn
  7. Gold
  8. Copper
  9. Aluminum
  10. Silver
If you haven’t found your answer from our FAQ, please send us a message.
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