Commodities are defined as raw materials and are split into two categories; Hard commodities and Soft commodities. Hard commodities include platinum, gold and silver and soft commodities include sugar and coffee.
The commodities market is considered the least advanced market in terms of the variety of trading products offered which is why CFDs, Forex and Options allow to trade on the prices of commodities without suffering the complexities of a rigidly structured market by having a clear target price that enables the trader to manage the risk they take and trade commodities in a simple and profitable way.