Commodity

Definition:

Products, other than purely financial products such as shares or bonds (e.g., raw materials or agricultural products) that are considered interchangeable with other commodities of the same type, and are typically traded through Futures Contracts. Prices of commodities are determined by market transactions rather than any actual qualitative difference.

The primary regulatory authority for commodities in the United States is the Commodities Futures Trading Commission (CFTC).

Return to Glossary