The vast majority of the public has very little knowledge when it comes to the inner workings of what is generally considered “high finance”.
Most of us have very little understanding of the difference between the titles we sometimes see in the media and even in movies like the Big Short.
While most people are aware that a “trader” trades different types of stocks most are not aware that there are many different types of traders, and while they perform the same type of function they in fact often trade in specific and specialised areas.
One of these specialised areas is Commodities.
A Commodities Trader is someone who, obviously, trades in commodities.
The next question would then be “What is a commodity?”
Commodities, in general, are those essentials that the entire world consumes or uses on a regular basis such as oil, grains and other crops, gold and other precious metals and even lumber and other valuable things that are in play the world over.
Commodities traders look to find the best prices to both buy and sell these items on the world markets.
Different Types of Commodity Traders
There are also different types of commodity traders within the subset that perform tasks for a variety of entities.
Some traders work independently looking for deals on the markets that can earn them a profit while others work for the most significant commodity producers and help to actually set the markets that are used to trade these items.
The Skills of a Commodity Trader
Commodity traders have to be both extremely intelligent and knowledgeable in their specific areas of expertise and also very up to date on current events as many factors can dramatically alter the price of certain commodities like natural disasters or political unrest in particular areas of the world.