MFA Blog

MFA Hedge Fund Glossary Word of the Day: Commodity

Posted on March 3, 2014

MFA Hedge Fund Glossary Definition – Commodity is a good or resource that investors trade, usually through Futures. A primary characteristic of Commodities is that their prices are determined by the way the market for such Commodities functions as a whole, rather than being differentiated based on qualitative differences between products of the same type produced by different producers. This is because a Commodity produced by one producer is considered equivalent to a Commodity of the same type produced by another producer. Commodities trading is generally regulated by the CFTC.

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