What Is a Prosperous Commodities Trader?
Saturday, November 29th, 2008 at
6:21 pm
Kenneth M asked:
I read an article about some one that is a Prosperous Commodities trader. All I know is this guy is rich & I want to know exactly what that title is. What does this person do? how does he generate income? How does that asset operation work? can some one please explain.
I read an article about some one that is a Prosperous Commodities trader. All I know is this guy is rich & I want to know exactly what that title is. What does this person do? how does he generate income? How does that asset operation work? can some one please explain.
Filed under: Commodity Trading
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“prosperous” just means that he prospered, or made money from, the business, so what he did was to be a commodities trader. A commodities trader is someone who facilitates trades on the commodities exchange, taking profits from the trades. Commodities are undifferentiated products, like soybeans or wheat. They are produced by a lot of different farmers and you don’t buy just the output of a single farm, but the price of commodities is set by demand overall. Otherwise, the process is very similar to that of a stock exchange, where there are buyers and sellers, and traders make money from the buying and selling of stocks. The commodities exchange in the U.S. is located in Chicago.