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How to Become a Security and Commodity Trader?

Are you ready to dive into the fast-paced world of Security and Commodity Trading? Learn how to become a successful trader in this guide

Published By Team SetMyCareer
Last Updated: 23 September 2024
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In this Career Outline


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Introduction to Security and Commodity Trader

"Security and Commodity Traders know that every shift in the market is a step toward either opportunity or lesson." — Robert Gray

A career as a Security and Commodity Trader is ideal for someone with a bachelor's degree in mathematics or finance who wants to study stock market trends. To become a trader, you must register with a regulatory organization, pass an exam, and maintain your license. Job growth in this field is expected to be moderate over the next decade. Traders work in a firm's trading department, executing customer orders and providing financial advice. They monitor market prices, trends, and product demands. Some traders execute trades electronically or on the trading floor, while others manage customer portfolios. A bachelor’s degree is typically required, with many traders holding advanced degrees. Relevant fields of study include economics, finance, agribusiness, and banking.


Steps to Become a Security and Commodity Trader:

Step-1

Security and Commodity Traders buy and sell securities (like stocks and bonds) and commodities (such as gold and oil) to generate profits. Success requires understanding market trends and economic indicators.

Step-2

While a degree isn't always required, a bachelor's in finance, economics, business, or accounting is recommended for foundational knowledge in market operations and risk management.

Step-3

Hands-on trading experience is crucial. Participate in internships, trading clubs, or online simulations to gain practical skills while in school.

Step-4

An MBA or specialized finance degree can enhance your credentials and open doors to senior positions, especially in prestigious investment firms.

Step-5

Many countries require traders to be licensed. In the U.S., for example, passing the Series 7 and Series 63 exams is necessary. Be aware of your region’s regulatory requirements.

Step-6

Stay updated on market trends and global events by reading financial news, subscribing to trading blogs, or taking advanced courses.

Step-7

Start in roles like trading desk assistant or analyst at a brokerage firm to understand market operations and gain relevant experience.

Eligibility Criteria

Eligibility Criteria Description
Eligibility Must possess at least 50% aggregate marks in 12th grade from a recognized board (PUC/CBSE/ICSE/ISC, etc.).
Educational Background High school diploma or equivalent.
Undergraduate Degree A degree in Finance, Economics, Business Administration, or Accounting is commonly preferred.
Postgraduate Degree A Master of Business Administration (MBA) or Master’s in Finance can be an added advantage.
Entrance Exams Valid scores in exams like CAT, MAT, CMAT, etc. Some colleges offer their entrance exams (e.g., NMIMS, Symbiosis, XUB, Andhra University, LPU) if CAT scores are unsatisfactory.

  • Must possess at least 50% aggregate from a recognized institution in 12th, from any board PUC/CBSE/ICSE/ISC, etc.
  • Should procure a valid score in entrance exams after 12th such as CAT, MAT, CMAT, etc.
  • A Bachelor’s degree in fields like Finance, Economics, Business Administration, or Accounting is generally favored by employers for those aspiring to become security and commodity traders.
  • Pursuing a Master’s degree, such as an MBA or a Master’s in Finance, can give candidates a competitive edge, providing deeper knowledge and better opportunities in the field.
  • Traders boost their expertise and credibility by pursuing certifications like the CFA or NISM in India for equity and commodity trading.
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Not eligible to pursue this career?


Find out different career options based on your current academic accomplishments. Enquire with our career experts and build a roadmap to your career success!

Tasks to perform as a Security and Commodity Trader:

Provide the most up-to-date price quotes for every security, as well as knowledge of the operations and economic circumstances of the companies that issue these instruments.

Economic conditions, such as volume, pricing, competition, or dynamics, should be communicated to other traders, management, or consumers.

Discover or create more opportunities for the acquisition or selling of securities or commodities.

Analyze the business product demands of your clients and suggest ways to offer services to meet those needs.

Make contact with potential consumers to provide information and understand the services that are offered.

Knowledge & Skills Required

Security and Commodity Traders must possess a wide array of skills to succeed in their careers. Here are the key knowledge areas and skills needed to excel in this field:

Knowledge Required
Comprehensive understanding of market dynamics and instruments. They employ strategies to minimize financial losses and manage portfolio risk.
Analyzing indicators like GDP, inflation, and unemployment. Understanding charts, trends, and patterns to forecast movements.
Awareness of how global political and economic events affect markets. Knowledge of laws and regulations governing financial markets.
Skills Required
Decision-Making Analytical Thinking
Communication Mathematical Proficiency
Emotional Resilience Attention to Detail

Understanding What are soft skills? and why is it important,as they complement technical abilities and enhance overall performance in the field of Security and Commodity Trader.

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The Knowlegde and Skills don't intrigue you?


The reason is that your interests don't align with this career. Identify your interests and match them with careers that require those skills. This alignment will help you grow and succeed in your career faster than you might expect!

Job roles offered for a Security and Commodity Trader:

Once you acquire the qualifications to become a Securities & Commodities Trader, various career paths open up:

Commodity Trader:

Engages in trading assets like metals, energy, and agricultural goods. They analyze market trends using quantitative and qualitative research to make investment decisions.

Broker:

Acts as a middleman in transactions like property sales. Brokers handle client relationships, transactions, and documentation while ensuring customer satisfaction.

Equity Trader:

Analyzes data, advises on investments, and tracks market trends to maximize profitability. They also help train new recruits.

Stock Trader:

Stock Traders manage stock investments, either for institutions like hedge funds or as independent traders. They often serve as financial advisors.

Investment Banker:

Helps businesses raise capital by issuing stocks and bonds and provides investment advice. This role demands strong quantitative and interpersonal skills.

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Not sure where you fit in?


With the wide variety of careers and job roles available, pinpointing the best option for you can be challenging. Thorough analysis and dedicated sessions can provide clarity on what to study, which industry and role to pursue, and the most suitable career path to follow.

Career Opportunities for a Security and Commodity Trader:

Security and Commodity Traders can opt for various fields of work in the companies listed below:

Targray Cargill Bijak
Gautam General Trading Luxoft Shell
Interactive Brokers Goldman Sachs Flex Trade
Standard Chartered

Colleges offering courses for Security and Commodity Trader:

Here is the list of colleges offering the Best courses after 12th:

BK School of Business Management, Gujarat University, Ahmedabad University of Technology, Jaipur
Chitkara College of Sales and Marketing, Jhansla Mahatma Jyoti Rao Phoole University, Jaipur
Hon Balasaheb Jadhav Arts Commerce and Science College, Junnar New Horizon Institute of Management Studies, Navi Mumbai
Bharatiya Vidya Bhavan S P College of Communication and Management, Delhi Dr Dashrath Chaudhary National Polytechnic, Siddharth Nagar
All India Institute of Management Studies, Chennai Amity University, Lucknow

End Note

A career as a Security and Commodity Trader is dynamic, fast-paced, and highly rewarding for those with a passion for financial markets. If you're ready to take the plunge, start by building your knowledge and gaining hands-on experience. SetMyCareer is here to guide you through Career counselling after graduation along with your career goals, helping you find the right path to success. Reach out to our experts today!