The price of a commodity refers to the amount a buyer is willing to pay for a unit of that commodity. Investors have been attracted to commodities as safe investments because they offer a hedge against inflation and other economic factors. One of the biggest risks to investors is volatility, meaning that an investment may decrease in value or increase in value substantially. For this reason many investors use stop-loss orders, which are best used when an investor has predetermined their risk tolerance and financial goals.

Both producers and consumers can access commodity products through commodity markets, which are centralized and highly liquid. By using commodities derivatives, participants can potentially hedge their future consumption or production. Participants include investors, speculators, and arbitrageurs. Historically, precious metals, such as gold, have been regarded as safe havens against inflation, and a wide range of commodities can help diversify a portfolio. Some investors also turn to commodities during times of market volatility, since commodities tend to move in the opposite direction of stock prices. Historically, commodity trading was a time-consuming, expensive, and highly specialized job reserved mostly for the wealthiest and most experienced investors. Today, there are more ways to participate in commodity markets.