Job description

Commodities are simply defined as a natural resource or raw material, such as gold, silver, corn, wheat, coffee, sugar, gas or oil. In financial terms, commodities are traded on commodities exchanges where they are bought and sold for future delivery.

Commodities traders act like other kinds of traders, for example stockbrokers, in trading these items on behalf of clients such as banks and other financial institutions, as well as for individual investors.

Typical duties include:

• Assessing the market and determining a price for a relevant commodity.
• Working with clients to buy and sell commodities as advised/instructed.
• Portfolio management.
• Carrying out trades and completing all necessary documentation.

Qualifications

Although no specific qualifications are required to become a Commodities Trader, some firms require a relevant bachelor's degree for entry level roles. Most of the profession is learned on the job, as experienced traders pass on their skills and expertise to younger colleagues.

Salary Snapshot

Recent salaries advertised on TopFinancialJobs (February 2010) include:

• £15-27 per hour for a temporary Commodities Documentation Drafter working for a leader in the commodities market in London.
• £140-170,000 per annum for a Director - Commodities Market Risk working in the City of London.
• £90-100,000 per annum for a Commodities Index Trader working in London.
• £50-60,000 per annum for a Commodities Contracts role in London.

Do you work in commodities trading? Would you like to contribute to our "Day in the Life of..." series? Email us at info@topfinancialjobs.co.uk for more details.