A commodity trader buys and sells financial products based on market predictions. They carry out trades of commodities such as gold or oil on behalf of clients and the firm they work for. Commodity traders might be employed by investment or commercial banks, hedge funds, or private equity groups.

Physical commodity trading, at its core, is the process of buying, selling, and exchanging raw or primary products, and it takes place on a global scale. These products, or commodities, are tangible, physical goods such as gold, oil, or grain.