Transforming goods
Transforming goods in space, time and nature. The role of the commodity trader is to match supply and demand, and to do so in the most cost-effective way. Commodities are not necessarily readily available where the demand lies. Cocoa for example, used ....
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Backwardation and contango
The fundamental concepts of commodity trading. Commodity traders pay great attention to the price curve. Significant differences in price levels over different time spans can offer physical traders arbitrage opportunities. Two particular configurations stand out: backwardation and contango.
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Technical vs fundamental analysis
Commodity traders just like any other financial trader rely on two different approaches when it comes to taking positions in a particular market. Given that Swiss commodity trading companies focus on physical trading and therefore have longer time horizons than "paper" traders, ....
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Trade lifecycle
The activities of commodity traders. The purchase, sometimes the production, or cooperating in the production of commodities. This step often requires commodity traders to have agents in the areas of production, particularly in the case of rare commodities or speciality ....
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Managing multiple categories of risk
The commodity trader's challenge. Commodity trading involves managing different categories of risk. As risk taking directly links to profit opportunities, traders aim to have the clearest understanding possible of the risks involved with each trade. In turn, traders will seek to limit ....
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Incoterms rules
Given that physical traders are in the business of moving goods around the globe, they rely extensively on standard contracts and pay close attention to the respective duties and obligations of the selling and buying parties.
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Commodity Trading references
Reference points for aspiring commodity traders and students.
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