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Commercial Trader: What It Is, How It Works, Example

Equities & Market Mechanics

Definition

In the commodities markets, the Commodity Futures Trading Commission (CFTC) has a special classification for "commercial traders", and describes them as traders that use the futures market primarily to hedge their primary business activities. For instance, a commercial trader would be an oil trader employed by an airline who hedges against expected jet fuel expenditures. A commercial trader (i.e.,

In Panel Profits

In the Panel Profits market platform, Commercial Trader: What It Is, How It Works, Example applies standard equities & market mechanics principles to comic assets and physical collections. Trading volume and liquidity spreads reflect secondary market dealer and auction transactions.

Common mistakes

Do not infer unobserved prices.