B2B, also known as business-to-business, is a type of transaction that occurs between two businesses. Typically, B2B transactions are done in order to help one company obtain the goods or services it needs from another company.
B2C, on the other hand, stands for business-to-consumer. This type of transaction occurs when a business sells its products or services directly to consumers. In most cases, B2C transactions are completed online without any face-to-face interaction between the buyer and seller.
C2B, or consumer-to-business, is a type of transaction in which consumers offer their goods or services to businesses in exchange for payment. This arrangement is often seen in freelancing situations, where businesses hire individuals to complete specific tasks or projects.
Finally, C2C transactions refer to those that take place between consumers. These can be either direct exchanges between two individuals (e.g., someone selling their used furniture on Craigslist) or indirect exchanges facilitated by a third party (e.g., someone buying and selling items on eBay).
A commodity market is a market that trades in the primary economic sector rather than manufactured products. Traders in a commodity market can include producers, processors, distributors, and retailers.
Commodities are standardized products that are interchangeable with other commodities of the same type. The prices of commodities are determined by supply and demand fundamentals in the underlying markets.
The most important commodity markets today are: energy (oil, gas, coal), metals (gold, silver, copper), food (grains, livestock), industrial metals (steel, aluminum) and precious metals (platinum, palladium). Other less traded but still relevant commodities include: coffee, sugar cocoa And finally agricultural products such as corn soybeans wheat rice. These product groups have different volatility levels and trading activities.
The global energy complex is the largest and most important commodity market in the world. It includes oil & gas as well as power markets. The energy complex is directly linked to global economic growth since it provides the fuel for businesses and households alike. The price of crude oil is perhaps the most closely watched commodity prices due to its importance to industrialized economies. Oil & Gas make up a large part of global trade flows and their prices can have a significant impact on inflation levels around the world.
Futures are derivative contracts that obligate the buyer to purchase an asset, or the seller to sell an asset, at a set price at a future date. Futures contracts are traded on exchanges and can be used to hedge against or speculate on price movements in the underlying asset.
Options give the holder the right, but not the obligation, to buy or sell an asset at a specified price on or before a certain date. Options are traded on exchanges and can be used to hedge against or speculate on price movements in the underlying asset.
Swaps are derivative contracts in which two parties agree to exchange payments based on changes in the value of an underlying asset. Swaps can be used to hedge against or speculate on price movements in the underlying asset.