Commodity indices

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Commodity indices

Indices measuring the price and performance of physical commodities, often by the price of futures contracts for the commodities that are listed on commodity exchanges.

Commodity Indices

Indices that track the price of different types of commodities. A commodity index may track commodities directly, or indirectly by tracking futures contracts for certain commodities. For example, commodity indices may track energy products or currencies, or may tracks futures contracts in either of those. Commodity indices operate much like exchange-traded funds or mutual funds in day-to-day trading: investors may buy, sell, or short sell shares in commodity indices as if they were stocks. An advantage to trading commodity indices is that it gives investors access to commodity markets without needing to buy or accept delivery on the underlying commodities.
References in periodicals archive ?
'This acquisition allows us to expand our leading Equities business in commodities indexes by adding a highly regarded platform, which has considerable market traction, expertise, and critical mass,' said Jason Barron, global head of Equity Derivatives.
"They are buying and holding, then buying more and holding more, and the physical market doesn't discipline them." Investment under commodities indexes has ballooned from around EUR70 billion at the start of 2006 to EUR235 billion in mid-April, about EUR90 billion of which has come from fresh financial flows with the rest coming from gains in the underlying commodities, according to Lehman Brothers.