Definition
A commodity exchange is a platform where commodities like gold, silver, oil, and agricultural products are bought and sold. It works similarly to a stock exchange but deals with physical goods instead of company shares.
Example
In India, exchanges like Multi-Commodity Exchange (MCX) allow traders to buy and sell commodities like gold and crude oil. Prices change based on demand and supply.
Caution
Trading in commodity exchanges can be risky because prices can change quickly due to global events, weather, or economic conditions. Investors should understand the market before trading.