With the advent of 24/7 access to information with the internet, it is now possible for just about anybody to become what is known as a “trader”.

If you are intelligent and willing to do your homework and research, you can, even with limited education, become a successful trader in stocks with what is known as day trading, by simply opening a brokerage account with a major firm, and a little ingenuity.

Complexity in Commodities Trading

Trading in commodities, however, is a little more complicated and requires a little bit more in the way of education and preparation.

Commodity traders are those who trade daily in the commodity markets across the globe, buying and selling positions in natural resources, such as oil and natural gas, and in cash crops like grains and other foodstuffs, or even in precious metals mined across the world.

Futures Contracts

The vast majority of Commodity traders never actually touch or even see the items that they trade in. Rather they trade in what are known as “Futures Contracts” which state that at a certain date in the future they will purchase a certain amount of a certain commodity for an agreed-upon price.

These contracts can, and often are, traded more than once before the agreed-upon date, depending on the fluctuations in the market for that particular item.

While an advanced degree is not required to become a trader in commodities, it is absolutely essential to get hired by one of the large financial institutions and that is where the bulk of commodities trading is performed.

Getting Licenced

After you have gained some experience trading for a large institution you can get your licence by passing certain exams and begin trading on your own.

Quite obviously you need a lot of capital to begin trading for yourself.