Stock Market Glossary
raw materials
Asset class made up of physical goods such as oil, gold, industrial metals or agricultural products.
In brief: Asset class made up of physical goods such as oil, gold, industrial metals or agricultural products.
Meaning in practice
Commodities often have a low correlation to stocks, but are highly sensitive to economic and political trends. Investments usually take place via futures or physically secured ETCs – each with its own risks.
Context for investors and traders
For traders, this term is most useful when preparing and executing an order. Its meaning depends on the venue, liquidity, time frame and order type. A single reading is not a reliable buy or sell decision.
How to use this in practice
Use the term first to describe the situation and add verifiable data: time frame, benchmark, costs and liquidity. Only then does it become an assessment that can be connected to an investment objective and risk budget.
What to keep in mind
Avoid false precision. Many market terms describe probabilities or historical patterns; they neither guarantee a return nor replace the review of a specific security.
