Table of Contents
- 1 What commodities does Trafigura trade?
- 2 What do commodity trading companies do?
- 3 What kind of company is Trafigura?
- 4 How does the market determines a physical reference price for commodities?
- 5 Is there any research on the economics of commodity trading firms?
- 6 How do commodity traders fund themselves?
What commodities does Trafigura trade?
Trafigura is the market leader for the majority of the refined metals we trade. We trade copper cathodes, copper blister and copper wire rods, aluminium, lead, zinc, nickel and precious metals. We maintain a global presence.
What do commodity trading companies do?
Commodity traders are individuals or businesses which buy and sell physical commodities such as metals or oil. Commodity traders may work to secure a supply of raw material for a business or industry, to help to create liquidity in an international market, or to invest in a speculative capacity.
What do say the market where commodities are exchanged?
Generally speaking, commodities trade either in spot markets or derivatives markets. Spot markets are also referred to as “physical markets” or “cash markets” where buyers and sellers exchange physical commodities for immediate delivery.
How do you make money trading commodities?
Traders make money by buying commodities (or commodity derivatives) for a certain price and then subsequently selling them for a higher price. The buyer of a futures contract makes money if the future market price of the commodity exceeds the market price of the commodity at the time of purchase.
What kind of company is Trafigura?
multinational commodity trading company
Trafigura Group Pte. Ltd. is a Singapore-based multinational commodity trading company founded in 1993 that trades in base metals and energy. It is the world’s largest private metals trader and second-largest oil trader having built or purchased stakes in pipelines, mines, smelters, ports and storage terminals.
How does the market determines a physical reference price for commodities?
Just like equity securities, commodity prices are primarily determined by the forces of supply and demand in the market. 2 For example, if the supply of oil increases, the price of one barrel decreases. Conversely, if demand for oil increases (which often happens during the summer), the price rises.
What is commodity exchange What is the role of commodity exchange and explain the commodity markets in India?
An organized commodity market can play the role of an aggregator of agricultural products more efficiently and more effectively. The market provides an organized and guaranteed mechanism for aggregating and selling agricultural products and small and dispersed farmers can make the best of it.
What are the 3 important characteristics to be a great trader?
Successful traders develop discipline, patience, adaptability, mental toughness, independence, and forward thinking.
- Day Trader Discipline. Discipline is a key trait every trader needs.
- Patience. Patience is related to discipline.
- Adaptability.
- Mental Toughness.
- Independence.
- Forward-Thinking Trading.
Is there any research on the economics of commodity trading firms?
Yet up to now there has been remarkably little research into this important area. The Economics of Commodity Trading Firms demystifies the commodity trading business through a combination of description and analysis. Section VI: Are commodity firms too big to fail?
How do commodity traders fund themselves?
Different commodity traders use different funding strategies involving different mixes of types of debt and debt maturities, and these funding strategies are aligned with the types of transformations firms undertake, and the types of assets they use to undertake them.
Who are Trafigura’s competitors?
Competitors of Trafigura which operate in the Oil & Energy space are: Vitol Group. Mercuria Energy Trading. Glencore. Noble Group. Gunvor.
Are commodity trading firms too big to fail?
• Although it has been suggested that commodity trading firms are potential sources of systemic risk, as are banks, and hence should be regulated in ways similar to banks, they are in fact unlikely to be a source of systemic risk. That is, commodity trading firms are not too big to fail.