Commodity Trading
Hi
I’ve received offers from 2 firms for trading. One is a local BB, which is still well known outside my country but not as big and one is an oil company. The BB role is in equities while the oil role is a rotational program with guaranteed trading rotations and potential trading seat as soon as I finish.
I’m tempted to take the oil company but I have some concerns as it isn’t a super major and has revenues in the 10s of billions range. The total compensation across both companies is also slightly different with equities paying about 20k more than the oil company.
I’m interested in commodities trading and want to pursue this but I also want to hedge my risks here in the event that I find out I don’t like it. I wanted to know what the exit opps are for oil trading and if this is a better offer than equities.
Well, based on the most helpful WSO content, both roles you've been offered have their own unique advantages.
The equities role at the local BB could offer a broader exposure to the financial markets and potentially higher initial compensation. However, the oil trading rotational program could provide a more specialized experience, particularly if you're interested in commodities trading.
As for exit opportunities, the WSO threads suggest that oil trading can be quite lucrative and rewarding. It's not uncommon for traders at major oil companies to earn in the millions if they end up running a desk. The job involves not just buying and selling derivatives, but also ensuring that a vessel filled with crude gets from one place to another on time, is hedged properly, meets all the spec/timing requirements of the refinery you're sending it to, and you still make money on the deal.
However, it's also important to note that the salary progression in oil trading might not be as fast as in equities, as indicated by some Glassdoor reviews.
In the end, it really depends on where your interests lie and what kind of career path you envision for yourself. If you're truly passionate about commodities trading, the oil trading role could be a great fit. But if you're looking for a more generalist role with potentially faster salary progression, the equities role might be more suitable.
Remember, there's no one-size-fits-all answer here. It's about finding the right fit for you. Good luck!
Sources: Crude Oil trading at big oil exit opps
Not super familiar with the subject matter, but from what I have heard exit ops of oil trading are really just trading other things like gas or products.
I don't think there is a wide range of exit ops for oil and gas, but that being said, lots of people don't leave because it is good pay, interesting work and the hours aren't as bad as IB or consulting.
I would take the oil trading gig. Equities are a complete dead-end.
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