Commodity Traders

Job Profile

• Work for trading firms, brokering firms or independently
• Take a position in the market for buying a commodity on the basis of their research and expertise to make profit in the commodity trading
• Inspect competing farmers plantations for predicting yields and quality
• Ascertain the best plantation in terms of yield and quality
• Discuss with trading or broking firm or other buyers their demands in terms of quantity and value
• Estimate the predicted selling price and make a bid for buying so that the deal is profitable
• Work through commodities exchange or directly with the producer
• Specialize in commodities such as wheat, rice, soya bean, etc

Salary/Package

An early career Trader, Commodities with 1-4 years of experience earns an average total compensation Rs. 3 lakhs p.a. A mid-career Trader, Commodities with 5-9 years of experience earns an average total compensation of Rs. 7.7 lakhs p.a. At a senior-career Trader, Commodities with 10+ years of experience earns an average of Rs. 10.8-25.7 lakhs p.a. The salaries may vary based on experience, skills, roles, location, etc.

Skills required

• Excellent negotiating skill
• Business and market awareness
• Good mathematical skill
• Research skills
• Ability to analyze micro & macro economic data, industry data and about positions taken by market operators
• Emotional balance
• Business acumen
• Communication skill
• Risk taking
• Understanding of Indian and International commodity market like CBOT & COMEX
• Price forecasting of commodity

Pros and Cons of an Entrepreneur

Pros

• Higher growth opportunities
• Diversification – Diversification is when you invest in a variety of industries that give results differently to changes in the market
• Provide security against inflation

Cons

• Highly volatile market – Commodities are most volatile security among other assets
• Sometimes no income generation
• Stressful environment

How do I be one

Path

Std XII (Stream: Any) >> Graduation (BCom/BEco/BTech/BBA) >> Post Graduation

(MBA/International Business) >> Certification (MCCP) >> Goal (Commodity Traders)

The MCX Certified Commodity Professional (MCCP) course is for those who want to participate in the commodity derivatives market. The MCCP certificate is valid for 3 years. The programme covers modalities of trading in commodity markets, trading practices, settlement, clearing and delivery procedures, legal regulation framework. MCCP examination has 50 questions and minimum qualifying score is 50%.