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What is the difference between securities and commodities?

Commodities are goods or services that are always the same regard to who produced them. Most commodities are raw products for example: silver, gold, coffee, soy, ...  but it can also be a mass produced unspecialized product for example plastic chairs from China.

A security is a tradable financial asset. Stocks, futures, options, banknotes, bonds, ... they are all examples of securities. 

Let say you would trade coffee as a commodities trader on the future exchange. They you buy and sell futures on coffee for a living. The futures are considered as a security but the coffee itself is considered a commodity. 


Commodities are real objects that are relatively easy to trade, can be physically handed over, can be stored for a certain period of time and can be exchanged with other products of the same type, which can usually be bought or sold by investors through futures exchanges. More generally, commodities are products that are traded, including foreign exchange, financial instruments and indices.

The characteristic of Commodity is that price is determined by market supply and demand rather than determined by the distributor or seller and the price is based on the price calculation of each Commodity actor for example (but not limited to): minerals and agricultural products such as iron ore, oil, ethanol , sugar, coffee, aluminum, rice, wheat, gold, diamonds or silver, but there are also so-called "commoditized" products such as computers