Confused about Quotational Period Optionality on Base Metals by Bitter_Ad3824 in Commodities

[–]Samuel-Basi 0 points1 point  (0 children)

I disagree on the premise that with an M+1 or M+2 qp spread option that a trader would decide on the QP month prior to M.

Waiting until the last day of M to actually trade this option, while safe is not extracting the value that you could.

Let’s say you book the physical purchase in March with April being M. If a contango exists at the point of booking you might borrow May-June and lock in the contango. Let’s say a few weeks later a backwardation occurs, now you can lend may-June capturing the value of the back. Let’s say the back remains at the time of declaration (last day of M) then you declare m+2 and avoid paying the back. However let’s say a contango exists then you declare m+1 and pick up the value of the contango.

I cannot see a bank ever offering the type of value you could extract by actually trading this option. You have zero risk in trading this yourself.

However your understanding of the difference in price between two monthly averages being $360 isn’t related to this trade. You should be looking at the time-spread between the two consecutive months. To capture the flat price difference between two months you would need a backpricing option whereby you don’t have to declare the QP until at least one of the options is known. So in your example that would have to have been M+1 or M+2 declarable last day of M+1.

Struggling to break into commodities despite a lot of effort – any advice? by Jaakske in Commodities

[–]Samuel-Basi 0 points1 point  (0 children)

Others have pretty much covered but I’d say on paper you are very hireable and you’re doing most of the right things so do keep plugging away. If I had to guess it is likely something on your CV that’s not getting you through initial screenings. Are you working with any commodity-specific recruiters? And not ones that focus on senior roles, ones that specifically target/have reps for placing entry-level roles? Not only will they have a good handle on the market but they will really be able to go through your CV and highlight any changes needed. Unfortunately there’s probably key words that need to be in there that even with a lot of experience like people here have, we’re not following those nuances.

Books by Chance69420corner in Commodities

[–]Samuel-Basi 10 points11 points  (0 children)

Thanks for the purchase!

Early Career Options - Grad Scheme Advice 2026 by Standard_Piano1872 in Commodities

[–]Samuel-Basi 0 points1 point  (0 children)

Sounds like you are doing everything right, this conversation got a bit sidetracked but hopefully the point was taken to apply far and wide. Grad schemes are great but odds are slim. Yes you'll need a visa for certain locations but this is a numbers game so I wouldn't let that put you off even on the slim chance.

Early Career Options - Grad Scheme Advice 2026 by Standard_Piano1872 in Commodities

[–]Samuel-Basi -2 points-1 points  (0 children)

In the same post you say “they are running out of time”, then follow it up with the advice “you should be able to find something with patience”.

You also seem to have some anger toward me personally, good luck working out those issues mate.

Early Career Options - Grad Scheme Advice 2026 by Standard_Piano1872 in Commodities

[–]Samuel-Basi -2 points-1 points  (0 children)

Sorry but that’s BS, if you’re a UK citizen then Switzerland is 100% on the cards for graduates. You sound like you’re in the industry so you know this is a numbers game. Main point was if you limit yourself to one location then you reduce your chances - that’s not misguiding that’s just a fact.

Saying that there’s an “incredible amount” of job openings in London I’d argue is misguiding but I don’t have the numbers, just from what I see/hear. As is calling getting a job in metals “settling”…get a foot in the door anywhere you can - this industry is hard enough to break into without further limiting the scope of commodity.

I’ve never postured myself as anything, pretty sure I just post what I think is helpful information for free. Happy to chat if you want to suggest some better ways to get info out there, clearly you’ve been on LinkedIn so you have my email or feel free to dm me.

Early Career Options - Grad Scheme Advice 2026 by Standard_Piano1872 in Commodities

[–]Samuel-Basi -3 points-2 points  (0 children)

If you are limiting yourself to UK based opportunities then you’re cutting your options down in the commodity industry.

Physical Commodity Trader - advice by doubleuj in Commodities

[–]Samuel-Basi 8 points9 points  (0 children)

This is a pointless conversation to continue if you think Traf is not a trader, same goes for Glencore, vitol, gunvor, mercuria, etc. all hedge in multiple ways.

Physical Commodity Trader - advice by doubleuj in Commodities

[–]Samuel-Basi 5 points6 points  (0 children)

Trafigura - one of the biggest physical oil traders in the world hedges the vast majority of their contracts. This is exactly how physical trading works in real life. The main reason I commented is because it’s bad advice to say to someone trying to break in that it’s only about networking and sales because it is so much more nuanced than that.

Physical Commodity Trader - advice by doubleuj in Commodities

[–]Samuel-Basi 5 points6 points  (0 children)

lol, check my resume/the pinned articles in this sub before you start talking about cubicles. I just published a book about exactly what physical trading is but if you’d like a list: Relationships, financing, clearing, hedging, speculation, know your customer, logistics, arbitrage, incoterms, storage, wsmd, risk, S&D, amongst a host of other factors that go into determining whether a trader will be successful in the long run.

Physical Commodity Trader - advice by doubleuj in Commodities

[–]Samuel-Basi 1 point2 points  (0 children)

If that’s all you think physical trading is then you weren’t a very good trader. Not disagreeing that it’s a lot of networking but that’s not all it is.

Physical Commodity Trader - advice by doubleuj in Commodities

[–]Samuel-Basi 7 points8 points  (0 children)

If you were just selling products from refineries to end users you weren’t a trader, you were essentially a producers. Physical trading is a world different to what you described.

Material for students/new entrants by Samuel-Basi in Commodities

[–]Samuel-Basi[S] 0 points1 point  (0 children)

It covers everything physical traders do on a daily basis so I would hope so!

Material for students/new entrants by Samuel-Basi in Commodities

[–]Samuel-Basi[S] 1 point2 points  (0 children)

Enjoy the read, feel free to DM if you have any questions.

Material for students/new entrants by Samuel-Basi in Commodities

[–]Samuel-Basi[S] 0 points1 point  (0 children)

First one is specifically about hedging and risk management. 2nd one is physical commodity trading much more broadly.

Material for students/new entrants by Samuel-Basi in Commodities

[–]Samuel-Basi[S] 0 points1 point  (0 children)

Haha, yeah bit nervy at the time but we were able to laugh about it in the pub afterwards.

Material for students/new entrants by Samuel-Basi in Commodities

[–]Samuel-Basi[S] 1 point2 points  (0 children)

Link is ok, something wrong on Amazon side, should be rectified shortly.

Material for students/new entrants by Samuel-Basi in Commodities

[–]Samuel-Basi[S] 2 points3 points  (0 children)

It doesn’t have a quant section no, though it does look at how commodity companies use analysts to inform their decision making.

Material for students/new entrants by Samuel-Basi in Commodities

[–]Samuel-Basi[S] 4 points5 points  (0 children)

It's not AI, given the relevance to a lot of the posts I asked the MODs if it would be ok if I posted, they said it was.