“It's not about being right or wrong, rather, it's about how much money you make when you're right and how much you don't lose when you're wrong”. - George Soros
A trader will tend to be more of a consumer of analysis than a producer’, and as such the necessary skills are more analogous to those of a food critic than those of a chef.1)
The trader should record the price level, the bid-offer spread, and most critically, the relationship to as many other benchmark prices as possible.2)
Bonuses have been a key point of contention for traders at integrated oil companies, such as Exxon Mobil Corp., that use trading as a way to bolster profits around the assets they own.1)
Merchant traders such as Vitol and Trafigura, by contrast, require traders to take on much higher risk and offer them a significant percentage of their book as a bonus.2)
On Tuesday, for example, dollar trades were limited to a no-more than 1.2% move, compared with 2% in the previous week, said one of the people. Traders are only aware of these limits when their bids are rejected by the trading system, the person said.
One junk-bond trader at Goldman Sachs Group Inc. GS -1.52%decrease; red down pointing triangle earned more than $100 million in trading profits for the firm earlier this year, an unusual gain at a time when new regulations have pushed Wall Street to take fewer risks.
“With more than 35,000 jobs, including 10,000 around the Lake Geneva Arc, and 4% of GDP, the importance of trade for the Swiss economy is no longer to be proven.”
trade commodities develop the domestic / international metals products market manage the P&L and risk full and detailed understanding of the fundamental drivers of the China Metals markets developing & implementing of trading strategies and tactics with accountability for delivery against annual profit target Knowledge of warehousing, finance, accounting and typical risk management methodologies
End User: natural short
Long - When you purchase or own something you are long that item. In the case of farmers, when harvest is complete, farmers are holding onto the grain they harvested giving them a long (+) position in that grain. As they sell their grain, farmers will unwind their long position until they are flat (no position).
Farmers: natural long
Short - When you don’t own something, you are short that item. In the case of an end user, they are constantly buying grain to cover their short (-) grain position. By buying (+) grain, they fulfill their short (-), thus leading to a neutral or flat position (0) for a certain period until they need to cover their next short.
Physical trading allows firms to take advantage of more arbitrage opportunities by storing and transporting commodities, in addition to trading financial instruments linked to them. The businesses can also act as a natural hedge to financial trading, potentially reducing risks.3)