Commodity broker meaning
Investment banks, commodity broking companies and clearing houses only tend to recruit the very best graduates. Candidates with a degree in any subject can enter this line of work. If you study a relevant subject, such as business studies, economics, maths, statistics, operational research or accounting, you may stand a better chance of securing an entry-level position. Completing an internship or work experience placement with an investment bank or clearing house is a great idea, and pretty much essential for entry into this competitive area of work.
Many commodity brokers start their careers as part of a graduate scheme. These training programmes tend to last around two years. If you are accepted onto a graduate scheme, the majority of your training will be done whilst on the job under the supervision of senior brokers. You will also have the opportunity to attend in-house training sessions from time to time. Commodity brokers must be registered with the Financial Services Authority before they can start trading, which means passing a number of exams.
As you gain more experience and move up the career ladder, you will become an associate and then a senior associate. Some people eventually move into director-level roles. The international nature of trading means that you may also get the opportunity to work abroad at some point in your career.
What about all the good times we shared? Ok, before you go, just tell us one thing…. Cancel account I've changed my mind. Floor trading is conducted in the pits of a commodity exchange via open outcry. A floor broker is different than a "floor trader" he or she also works on the floor of the exchange, makes trades as a principal for his or her own account. IBs do not actually hold customer funds to margin. They advise commodity pools and offer managed futures accounts. CTAs exercise discretion over their clients' accounts, meaning that they have power of attorney to trade the clients account on his behalf according to the client's trading objectives.
A CTA is generally the commodity equivalent to a financial advisor or mutual fund manager. A commodity pool is essentially the commodity equivalent to a mutual fund. This is the commodity equivalent to a registered representative. From Wikipedia, the free encyclopedia. Retrieved from " https: