You may have been hearing the phrase ‘commodity trading’, but are yet to really understand what commodity trading is all about, or out of curiosity you have considered how to start up commodity trading. This post should answer some questions you have about it.
Commodity trading is a type of business that involves the international buying and selling of primary goods in their raw or partially refined state. These goods or materials require, mainly, finding, gathering and, most times, harvesting and processing them for the market.
This type of trading involves commodities which range from raw materials like oil and gas, to silver, gold, coffee, wheat, cocoa and sugar. Other commodities to trade in are agricultural products such as grains.
Before you start up a commodity trade in Nigeria, you may need to consider the following steps:
- Pick a market
What area do you want to focus on? You must have a target market, especially since this trading involves the international market. You will need to decide what country you want to export your products to.
- Choose whether to buy or sell
Although it is possible to buy and sell, as a beginner, you may need to focus on one of the two while you make your findings on how to handle both.
- Select a specific product to trade
What are the best products to trade? This is a question you must research on before you venture into commodity trading. It is essential for you to also take into consideration what product is within your reach and how you can constantly meet the demands of your customers in the international market. Ensure that you have a standard source of the products you would be supplying or demanding.
- Get registered with an authentic trading platform
The best thing you can do as one who wants to invest in commodity trading or who is interested in starting a commodity trading business, is to seek an authentic platform that makes the process seamless for you by handling all the paper work required and ensuring that you send or receive your products safely.
- Start trading
There is no better time to do anything than now. Remember that procrastination is the thief of time. If you want to start trading in commodities in Nigeria, you need no further delay. Once you have completed the steps above, then start. If you require a loan, you may need to reach out to a company that handles all kinds of commodity trading.
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