A Commodity Exchange is a marketplace where various raw materials and primary products, known as commodities, are traded. These commodities can include items like gold, oil, wheat, and coffee. Traders buy and sell these goods, often using contracts that specify the price and delivery date, allowing them to hedge against price fluctuations. Commodity exchanges play a crucial role in the global economy by providing a platform for price discovery and risk management. They help producers and consumers manage their exposure to price changes, ensuring a more stable market for essential goods. Examples of well-known exchanges include the Chicago Mercantile Exchange and the London Metal Exchange.