Commodity trading involves the exchange of raw materials between producers and commercial users in commodity markets. Various commodities such as agricultural products, livestock, energy sources, metals, and precious metals are traded on regulated exchanges through standardized futures contracts. While individual traders can potentially earn large profits in this market, it also carries significant risks due to volatility in commodity prices from factors like supply and demand, speculation, weather, and global economics. Proper risk management is important for traders to manage the risks inherent in the commodity markets.