Any layman would have heard of the term “Stock Market”. As the name connotes, it is normally associated with investments and company stocks. While this is common and probably the most popular form of trade investment, there is also such a thing called “Commodities Trading”. Commodities trading deals with agricultural products, such as wheat, malt, sugar and corn, as well as metals, such as gold and contracts based on the purchase and trade of these goods, as opposed to the stock market which deals with all types of financial instruments, such as stocks, government securities, interest rates and indexes. With the advent of technology, both stock and commodities trading are now traded online. For purposes of discussion, we will focus on commodities trading online.
Online commodities trading actually has its roots from eighteenth century Japan. Though some researchers argue that men traded in Persia in the years before Christ, citing evidences of primitive trading contracts for various goods. New York and Chicago are, however credited for bringing commodities trading in the United States of America during the mid-nineteenth century.