Commodity Trader - augmentjobs

Job Overview: We are seeking a dynamic and experienced Commodity Trader to join our team. The Commodity Trader will be responsible for executing trades, managing commodity portfolios, and analyzing market trends to optimize trading strategies. This role requires strong analytical skills, market knowledge, and the ability to make informed decisions in fast-paced trading environments.

Roles and Responsibilities:

1. Market Analysis and Research:

   • Conduct in-depth analysis of commodity markets, including energy, metals, agriculture, and soft commodities. Monitor supply and demand dynamics, geopolitical events, and macroeconomic factors influencing commodity prices.
   • Analyze market trends, price movements, and trading patterns to identify trading opportunities and risks. Utilize technical analysis, fundamental research, and quantitative models to develop trading strategies.

2. Trading Execution:

   • Execute trades in commodities markets to buy and sell futures contracts, options, and physical commodities. Monitor trade executions, order flows, and market liquidity to achieve optimal pricing and minimize trading costs.
   • Manage trading positions, liquidity risk, and margin requirements. Implement hedging strategies and position adjustments based on market conditions and portfolio objectives.

3. Risk Management:

   • Assess and manage trading risks, including market risk, credit risk, and operational risk. Utilize risk management tools, stop-loss orders, and position limits to mitigate potential losses and maintain portfolio profitability.
   • Conduct stress tests, scenario analysis, and sensitivity testing to evaluate the impact of market fluctuations and adverse events on trading portfolios.

4. Performance Monitoring and Reporting:

   • Monitor and evaluate the performance of commodity trading portfolios. Track portfolio returns, P&L attribution, and performance against benchmarks and trading objectives.
   • Prepare daily trading reports, position summaries, and performance analytics for internal stakeholders and regulatory compliance.

5. Relationship Management:

   • Build and maintain relationships with counterparties, brokers, and market participants. Negotiate trading agreements, pricing terms, and transactional arrangements to support trading activities.
   • Collaborate with research analysts, portfolio managers, and risk managers to align trading strategies with market insights and investment mandates.

6. Compliance and Regulatory Oversight:

   • Ensure compliance with regulatory requirements, exchange rules, and internal trading policies. Maintain accurate trade records, transaction documentation, and reporting obligations.
   • Stay informed about regulatory changes, market regulations, and industry best practices related to commodity trading and derivatives markets.

Skills Required:

• Bachelor's degree in Finance, Economics, Mathematics, or related field. Master's degree (e.g., MBA) and professional certifications (e.g., CMT, CFA) are preferred.
• 3-5 years of experience as a commodity trader, energy trader, or derivatives trader. Experience in trading physical commodities and futures markets is advantageous.
• Strong understanding of commodity markets, trading strategies, and risk management techniques.
• Proficiency in technical analysis, quantitative modeling, and trading platforms (e.g., CQG, Trading Technologies).
• Excellent analytical skills with the ability to interpret market data, perform statistical analysis, and make data-driven trading decisions.
• Effective communication skills, with the ability to articulate trading strategies, market insights, and risk assessments to stakeholders.
• Ability to thrive in a fast-paced, high-pressure trading environment. Adaptability and decisiveness in making trading decisions under uncertainty and market volatility.
• Strong attention to detail, accuracy, and compliance with trading regulations and internal controls.

Compensation:

• Performance-based bonuses and incentives may range from 20% to 50% of base salary, based on individual trading performance and profitability.
• Additional benefits may include health insurance, retirement savings plans, professional development allowances, and potential profit-sharing or equity participation.