What Does a Commodities Trader Do?

When you think of investing, your mind might first wander to stocks or perhaps real estate. Another type of investment that should never be overlooked are commodities. If you get into commodities trading, however, it’s smart to talk with a commodities lawyer.

Commodity traders buy and sell commodities. So what are commodities? A commodity is something that is tradable for another good of the same type.

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Think of a bushel of Fuji apples. You can trade that bushel for another bushel of the same type and they will be the same. The same is true for pure gold, silver, rice, corn, and many other products.

Of course, there can be different grades and subsets of a given commodity. Oil is one of the most widely traded commodities, and you can get heavy crude, sweet crude, and many other types. A barrel of sweet crude is not exchangeable with heavy crude, as they’re two different types. A barrel of sweet crude can be exchangeable with another sweet crude.

Commodities markets are crucial for the global economy. That makes commodity traders an integral cog in the global economic system. The same is true for commodities lawyers and other professionals working in the industry.


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