A commodities exchange is an
exchange where various
commodities and
derivatives products are traded. Most
commodity markets across the world trade in agricultural products and other
raw materials (like
wheat,
barley,
sugar,
maize,
cotton,
cocoa,
coffee,
milk products,
pork bellies,
oil,
metals, etc.) and contracts based on them. These contracts can include
spot prices,
forwards,
futures and
options on futures. Other sophisticated products may include
interest rates, environmental instruments,
swaps, or ocean
freight contracts.
Steel contracts started to be traded for the first time on the
London Metal Exchange in 2007.
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