January 7, 2009
What is a Prosperous Commodities Trader?
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.
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Comments on What is a Prosperous Commodities Trader?
“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.