Latest News Editor's Choice

Opinion / Columnist

COVID-19 have made the remote work to be in demand - Commodity broking business

13 Nov 2020 at 13:51hrs | Views
The COVID-19 is a game-changer in the whole world. The business community now needs a massive revolution to promote the products and services. Technology is now the gateway being used to make it easy for financial markets to reach people. COVID 19 have made the remote work to be in demand.

The Commodity broking is gaining momentum.

A commodity is an individual broker or brokerage firm that handles commodity trades on behalf of its clients. Whether you are making trades online or over the phone, your commodity broker is essential for getting trades done efficiently.

Commodities are tangible goods sold and traded throughout the world, including agricultural products, industrial metals, and energy sources such as crude oil. In addition to a direct trading market, however, these products are bought and sold by investors in the form of futures, options, and other financial derivatives.

The term "commodity brokers" typically refers to someone who places commodity trades for their clients, but it can also refer to a brokerage firm that handles commodity trades.

Brokerage firms are designated as introducing brokers (IB) or futures commission merchants (FCM). Individuals are designated as associated persons (AP).

A commodity broker is essentially a mediator between individual traders and the exchanges to facilitate trading in the commodity markets for the average investor

Commodity brokers facilitate trading in the commodity markets for the average investor. Aside from owning a seat on an exchange and trading in the commodity pits, most people have to trade commodities through a broker.

Commodity brokers have traders on the floor to execute your trades, or they might have a trading platform that places and executes trades electronically at the exchanges. The exchanges rely on brokers to bring business to the exchanges and they have their rules to govern how the brokers conduct business.

Full-Service Brokers
Commodities were exclusively traded in the commodity pits on exchanges until the 1990s. Most orders were placed by phone through a full-service broker.

Online Commodity Trading.
A client trading online will log into their broker's trading platform and select the market they want to trade along with the type of order, price, and quantity. This is all done with a couple of clicks of the mouse. When the order looks good, the trader will hit the "Buy" or " Sell" button to send the order through.

A commodity broker acts as a go-between for individual traders and the exchanges. Traders benefit from commodity brokers services because they make the process more orderly through technology, experience, and monitoring regulations. Commodity brokers also help bring customers

Enos Denhere is a Journalist, Business developer and Leadership Success Coach. His articles have been published in local and international print and online news platforms. Denhere has represented some international companies in Zimbabwe. He is looking forward to work with Multinational Companies (Commodity companies, Direct Buyers and Sellers) and Investors who are interested to do Commodity business in Africa. Do you need Africa Commodity Broker? Email Call/What Sapp +263773894975

Source - Enos Denhere
All articles and letters published on Bulawayo24 have been independently written by members of Bulawayo24's community. The views of users published on Bulawayo24 are therefore their own and do not necessarily represent the views of Bulawayo24. Bulawayo24 editors also reserve the right to edit or delete any and all comments received.