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    Hi all,

    Please may any enlighten me on what is involved on a commod trading desk, is it similar to simple flow trading of equites? or do they actually take speculative positions on the commoditie market? pref looking at energy, precious metals.
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    (Original post by CityTrader)
    Hi all,

    Please may any enlighten me on what is involved on a commod trading desk, is it similar to simple flow trading of equites? or do they actually take speculative positions on the commoditie market? pref looking at energy, precious metals.
    They speculate in price discrepancies in the physical and paper markets and deal in flow too.

    Very different employment path to ib trading. Often 2 years in back and middle office learning the process which then makes them able to spot said pricing discrepancies. Glencore have a grad scheme.
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    thanks for your reply ;-).....do many BB have commod trading desks or is just with BP, Glencore ect..
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    (Original post by CityTrader)
    thanks for your reply ;-).....do many BB have commod trading desks or is just with BP, Glencore ect..
    All do to some extent. GS/MS and to a lesser extent Barcap are dominant. JPM looking to make a move recently as well.
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    Do commod desks hire straight from grad? or is it a gradual process?
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    Desks hire from grad positions for paper trading in banks. However, MS have 2 year no trading analyst trading before you are placed to a desk. Lots of GS, MS and BarCap traders are ex Enron, BP, Shell guys.

    Physical traders, oil majors, Traf, Vitol etc pay very well for senior guys and take a lot of prop risk.
 
 
 
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