Assignment
Q1. Explain the overview of commodities and forex market?
i) Commodities Market
A commodity market trades in raw or primary products rather than
manufactured products. Soft commodities are agricultural products
such as wheat, livestock, coffee, cocoa, and sugar. Hard
commodities are mined or extracted, such as gold, rubber, natural
gas, and oil. More recently developed commodities markets
include those for emissions, electricity, and cell phone minutes.
For example, one ounce of gold of a given purity
should be the same regardless of who owns or sells it. Commodity
markets can include physical trading of the actual commodity or a
variety of derivative contracts including spot contracts
ii) Forex Market
The foreign exchange market or forex market is the market where
currencies are traded. The forex market is the world’s largest
financial market where trillions are traded daily. It is the most liquid
among all the markets in the financial world. Moreover, there is no
central marketplace for the exchange of currency in the forex
market.
It is an OTC market. The currency market is open 24
hours a day, five days a week, with all major currencies traded in
all major financial centers. Trading of currency in the forex market
involves the simultaneous purchase and sale of two currencies.
Market Participants
