Commodities trading involves buying and selling raw materials or primary goods. It allows traders to speculate on price movements of commodities such as agricultural products, energy resources, metals, and other physical assets. Traders can go long or short based on their predictions. Commodities trading is done through instruments like futures contracts, options, ETFs, and CFDs. It provides opportunities for diversification and serves as a hedge against risks. Understanding market fundamentals and monitoring factors like supply-demand dynamics are crucial for successful commodities trading.