Breaking into commodity trading

Question

Really interested into commodities recently. What are some entry level roles to break into the space?

Rotterdam · Accepted Answer

I got shit thrown at me the other day for saying that if you wanted to get a trading seat within the first year of starting then physical commodities aren't for you. Not sure what the deal is lately.

Rotterdam · Answer

Yes, there are companies that offer opportunities to trade within the first year but they are the exception, not the rule. The vast majority of places out there are going to rotate you through various roles to learn the business before letting you take on any risk. The only exceptions to that that I have seen are desks where you're trading cheap commodities in such small volumes that if you fuck up you only cost the company a couple thousand bucks (soybean hulls anyone?). I don't think those seats are what the majority of people on this site are after.

thoroughbell · Answer

I feel potentially attacked haha but rotterdam is dead on as usual. Risk is a weird thing to run in general let alone early in your career without support. Better you find a shop and a mentor that actually can teach you and has assets in place to really be flexible and trade in a number of different ways so you gain exposure. Now that all said definitely target programs that actually have trading end goals in mind ie those rotational programs.

EddyD · Answer

DeltaDecay
Agreed. But most commodity places you will go through the ops/risk/analyst route. Also agree a lot firms throw the junior trading tittle around without giving much risk. Heck I've seen the Trader title being thrown around without much responsibility.

Atleast in Metals/Grains/Oil there is no way someone gets to take risk within 2 years unless they are really really good (and even then it will be a small book) or they have internal connections.

I think sometimes people fail to realize the Trading Route at a Bank is very different from a trading route in commodities.

+28	Q&A: US Power Trader (Prop/Spec)	17	1h
+12	Worth reneging on S&T offer?	8	13h
+10	Trading Forum Idea	6	13h

1	redever	99.2
2	BankonBanking	99.0
3	kanon	99.0
4	Secyh62	99.0
5	Betsy Massar	98.9
6	CompBanker	98.9
7	GameTheory	98.9
8	dosk17	98.9
9	DrApeman	98.9
10	numi	98.8

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

Breaking into commodity trading

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

Breaking into commodity trading

Trending Content - Sales and Trading Forum