A commodity exchange is a marketplace where various raw materials or 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 for price discovery and risk management. Commodity exchanges facilitate both spot trading, where goods are exchanged immediately, and futures trading, where contracts are settled at a later date. Major exchanges, such as the Chicago Mercantile Exchange and the London Metal Exchange, play a crucial role in the global economy by providing a platform for price transparency and liquidity.