Commodity exchanges are legal entities that determine and enforce rules and procedures for trading standard commodity contracts and related investment products . Commodity exchanges also refer to the physical center where trading takes place. Commodity exchanges are very large and spread across almost the entire world, and are traded in excess of trillions of dollars every day. In Indonesia, commodity exchanges that get licenses from the Commodity Futures Trading Regulatory Agency (Bappebti) are the Indonesian Commodity and Derivatives Exchange (ICDX).
Types of Commodity Products
- Metals – These commodity products consist of precious metals and industries, such as gold, silver, copper, palladium, and platinum.
- Energy – Commodity products can also be energy producers, both in the form of raw and processed products. For example, petroleum, natural gas, coal and gasoline.
- Animal Husbandry – Animal feed and live cattle are included in livestock in commodity products. Examples are lean pork, live beef, beef, and others.
- Agriculture – Consists of agricultural and forest products. Examples are corn, rice, soybeans, coffee, rubber, and many others.