Commodities Trader

Commodities traders are responsible for buying, selling, and the otherwise exchange of physical and agricultural commodities.

Summary

Commodities are physical goods, such as precious metals and agricultural products, that are regularly yielded and traded around before they make it to market. Commodities Traders are masters of the workings of the markets. Although they are not capable of seeing the future, they are knowledgable in how to utilize the exchange. Traders will set up contracts for buyers to buy a commodity and hopefully sell it for a higher price. The goal is to maximize the difference in a low buy and high sell price, which produces the most profit.

As with all forms of investing, there are associated risks in commodites trading. Volatile prices, poor weather and natural disasters, and fluctuation in interest rates are just some of the risks that traders must accept when engaging in the commodities trade. Traders, however, are skilled in recognizing where things can go wrong and how to adjust for these variables.

Educational Requirements

There is no strict requirements in becoming a Commodities Trader, but there are many common traits among successful traders. Although a formal degree is not required, an educational background in finance, economics, business, or quantitative fields such as math and statistics may help. Some traders choose to pursue advanced degrees, including Master's or even Ph.D. in these subject areas.

Specialized training such as workshops and certifications can give traders a boost in related career skills. These trainings can elevate trader's knowledge in field specifics, with certifications serving as a proof of their abilities.

Salary Information 2022

According to the Bureau of Labor Statistics, the median salary of a Commodities Trader in 2022 was $67,480.

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Information retrieved from Bureau of Labor Statistics: Securities, Commodities, and Financial Services Sales Agents