A commodity refers to any good or service that is interchangeable with another good or service of the same type. In other words, commodities are products that have uniform quality, characteristics, and price, regardless of their source or producer.
Examples of commodities include agricultural products, such as wheat and corn, energy products, such as crude oil and natural gas, and metals, such as gold and silver. These commodities are often traded on commodity exchanges, where they are bought and sold based on their current market value.
Commodities are essential components of global trade and commerce, with their prices often affected by factors such as supply and demand, geopolitical events, and economic conditions. Due to their interchangeable nature, commodities are often subject to price fluctuations, making them a popular choice for traders and investors seeking to profit from changes in the market.