Trading (Crude oil)

1) Is trader a sale-based job?
Ans) Sales is too general to begin with. Some may have monthly target to meet and some may not and remuneration can be based on profit made, it all depends. A trader may or may not have sales target it depends on the company's role in supply chain (Refiner or Trading house) or individual company decision.

2) What is the differences between trader and broker?
Ans) Trader is someone who bought the product before selling it.
Broker is someone who broke a deal to get commission or profit from the deal between two trading entity.

3) Do trader do physical and paper trading?
And what are being done in the trading process?
Ans) It depends on the trader's role. Physical trade may or may not need to be hedged depending on the flat price risk. You can be a pure paper trader as well.
Physical trade is just like buying physical goods and arranging logistics to deliver it to the buyer's delivery place (fob, cfr, des etc..). All cost involved needs to be accounted for.
Paper trade is just like trading common shares, going thru exchanges mostly. But some may be OTC etc.. Like Forwards and Futures. Find out more on their characteristics.

4) What is the general starting pay of a junior crude oil trader?
Ans) Never heard of a Junior Crude trader oil. You might wanna try searching for an assistant trader role. I am sure u can find it out urself man. : )

5) Which are the famous and big companies that are focusing on crude oil trading?
Most NOCs and Majors and some private companies dominating the oilfield in those south american countries.


Thanks,
Compassionate Oil Trader

Originally Posted by chocobobo

Hi all,

I have just recently graduated.
I am totally clueless about the job scope of a trader but hopefully somebody can enlightened me.
I tried to google some of the question but do hope somebody can correct me if I make mistake.

1) Is trader a sale-based job?
• I have the perception that trading is not really a sale-based job.
Sale related responsibility are done by broker instead.
Am I right?

2) What is the differences between trader and broker?

3) Do trader do physical and paper trading?
And what are being done in the trading process?

4) What is the general starting pay of a junior crude oil trader?

5) Which are the famous and big companies that are focusing on crude oil trading?

Thanks in advance for those who reply to this.
You're awesome!!

Hi, I currently have 1 year of exp in trade finance in a bank and I wish to get into a trading firm, maybe as an operator or in a support function due to my lack of experience. Not sure how relevant trade finance exp is to a trading firm (not necessarily oil), but how possible is it to make this switch? I've been applying to roles, including those for fresh grads for a few weeks now but have got no replies at all.

Thanks!

Originally Posted by Unregistered

Hi, I currently have 1 year of exp in trade finance in a bank and I wish to get into a trading firm, maybe as an operator or in a support function due to my lack of experience. Not sure how relevant trade finance exp is to a trading firm (not necessarily oil), but how possible is it to make this switch? I've been applying to roles, including those for fresh grads for a few weeks now but have got no replies at all.

Thanks!

0.001% sorry, dont mean to burst your bubble, but its an old boys club, people move around via their network and recommendations. There are people with way more experience than you yet are still struggling to move up the chain. Not surprised you're not getting any replies lol.

Originally Posted by Unregistered

Hi, I currently have 1 year of exp in trade finance in a bank and I wish to get into a trading firm, maybe as an operator or in a support function due to my lack of experience. Not sure how relevant trade finance exp is to a trading firm (not necessarily oil), but how possible is it to make this switch? I've been applying to roles, including those for fresh grads for a few weeks now but have got no replies at all.

Thanks!

It is possible if you want to go for a trade finance or again but still you need to justify your 1 year of experience. Why are you leaving etc. You are no different from a fresh graduate. That is why you have no responses from the roles.

That said, the industry is small and there are just that few good candidates in the market.

Every switch will possibly give you at least 30% increment.

Originally Posted by Unregistered

It is possible if you want to go for a trade finance or again but still you need to justify your 1 year of experience. Why are you leaving etc. You are no different from a fresh graduate. That is why you have no responses from the roles.

That said, the industry is small and there are just that few good candidates in the market.

Every switch will possibly give you at least 30% increment.

Thanks for your reply. I'm open to trade finance or a treasury related role on the client side as I feel it provides more exposure than within a bank. Point taken about justifying my 1 year of exp, but at what point am I not considered a fresh grad? Will it be when I've amassed 2 years or more worth of exp?

Originally Posted by Unregistered

Thanks for your reply. I'm open to trade finance or a treasury related role on the client side as I feel it provides more exposure than within a bank. Point taken about justifying my 1 year of exp, but at what point am I not considered a fresh grad? Will it be when I've amassed 2 years or more worth of exp?

Anything below 3 years is entry level. If you want to be considered a senior role, at least 4 to 5 years n above. Otherwise the offer wont be good.

Originally Posted by Unregistered

Thanks for your reply. I'm open to trade finance or a treasury related role on the client side as I feel it provides more exposure than within a bank. Point taken about justifying my 1 year of exp, but at what point am I not considered a fresh grad? Will it be when I've amassed 2 years or more worth of exp?

Work one year then wanna climb in commods. Wrong industry la you. Very naive.

Originally Posted by Unregistered

Work one year then wanna climb in commods. Wrong industry la you. Very naive.

If you think that 1 year is too short of a time for switching around, then the next thing you know will be you are stuck in the bank for 5 years without relevant experience for the next role. The key is do not limit yourself!

1) Try to do more research on the list of relevant companies and roles available within your reach.
2) Prepare yourself well for interview
3) Learn and seek for a bette role
4) Repeat above

= )

Is there an 'unspoken' age limit that one can make the switch to trading within the same org from a support role eg. risk or operator?

Originally Posted by Unregistered

Is there an 'unspoken' age limit that one can make the switch to trading within the same org from a support role eg. risk or operator?

Heavily dependent on too many variables eg firm culture (promote internally or hire external traders), whether your traders like you, whether you can make it, whether there is an opening etc. Though it is easier at the smaller Chinese shops.