Commodity trader questions

Hi guys, I've been looking for it in the forum but couldn't find precise information. I was wondering what a commodity trader does at for example Trafigura or the equivalent? what's a typical day? Do physical commo trader and paper commo trader are mutually exclusive or it is one same person? It seems to me that this is more like sales trading (market making) than anything prop trading?

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Best Response

Check Blender's comment towards the bottom of this thread: https://www.wallstreetoasis.com/forums/the-day-in-the-life-of-a-physica…

As with many things, the answer to most of your questions is, "it depends." Looking at oil/gas, trading for an independent refiner is likely going to be different than at somewhere like Trafi, and both will be different than trading/hedging fuel for an airline. All three would have titles along the lines of "trader" but have different goals and will take different positions.

 
marcellus_wallaceIt's pretty obvious you are still in college thanks for coming out.
Nice.
Under my tutelage, you will grow from boys to men. From men into gladiators. And from gladiators into SWANSONS.
 
17miledriveI want to start a discussion on commodity trading at different type of companies. i will focus on hedgefund/prop-shop/bank/major(bp, shell)/commodity trading firm(vitol/glencore). please comment

Hedgefund: Pro: prop-trading, potential for $$$$$. Con: most hedgefund don't specialize in energy and strategy may be to risky and too quantitative.

prop-shop: pro: can't think of any. con: alot of them a scams and very few focus on commodity

bank: pro: more stable than hf and great training. con: anti prop trading regulations. most are in houston, which may be a con if you want to go to NY.

oil major (bp/shell/conoco): pro: huge physical desk and most stabiliy. con: training is long and the pay(bonus) sucks. I really don't know much about this one. would like to know more....

commodity trading firm(glencore/vitol): pro: they are awesome. both physical and prop trading and great $$$$$$$. con: very very hard to get in.

I'm currently still in college but will start my career in commodity trading. i cant give too much info about myself though..and sorry for bad grammer.

lol you have absolutely no idea what you're talking about. Literally 0. Pretty much everything you have said here is wrong outside of perhaps the fact that there is marginally more stability at a bank vs prop shop/HF, which itself isn't a pro or con since it is just a trade-off for upside in comp.

I'll assume you're a troll though and just stop there.

 

Le wild Derp spotted a troll

[quote]The HBS guys have MAD SWAGGER. They frequently wear their class jackets to boston bars, strutting and acting like they own the joint. They just ooze success, confidence, swagger, basically attributes of alpha males.[/quote]
 

Probably not.. the big players in ags are still mainly the merchants and food producers. In this case, why would you want to trade at a bank anyway?

 

Interesting, how do they fit D M into a can?

Under my tutelage, you will grow from boys to men. From men into gladiators. And from gladiators into SWANSONS.
 

They don't, there's just too much D M to handle. Now, how do they fit D M's dick in a box, that's another question...

"You stop being an asshole when it sucks to be you." -IlliniProgrammer "Your grammar made me wish I'd been aborted." -happypantsmcgee
 

I assume you'll be working at a physical trading shop and unless you have prior knowledge of cash markets and/or fruit distribution, it'll be difficult to show case any industry knowledge. However 99.5% of learning your product will be on the job training and NO physical trading shop will expect fresh hires to have a clue or even begin trade company capital.

I'd focus on "why you want to work here and be a fruit/seafood trader" and have a general idea of how future contracts and hedging works.

 

MCX GOLD February contract was trading at Rs 27646.00 down Rs 4, or 0.01%. It touched an intraday high of Rs 27654.00 and an intraday low of Rs 27605.00

commodity Tips Expert
 

MCX GOLDGUINEA January contract was trading at Rs 21878.00 up Rs 39.00, or 0.17%. It touched an intraday high of Rs 21893.00 and an intraday low of Rs 21803.00.

MCX GOLDGUINEA March contract was trading at Rs 22249.00 up Rs 39.00, or 0.17%. It touched an intraday high of Rs 22299.00 and an intraday low of Rs 22210.00.

commodity Tips Expert
 

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