This is perhaps the oldest trading in the world of financial markets which dates back to as old as the 16th century. This is the simple process of buying and selling a large range of instruments which include metal, oil, gas, and even farm products. Such trades can take place in the spot or derivatives market. There are two main segments in which commodities are segmented. One is hard commodities which include metals, crude oil, etc. and second is soft commodities that have limited shelf life like wheat, soybean, coffee, etc.