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What Is an Energy Trader and How to Become One

What Do Energy Traders Do?

An energy trader acts as a broker between buyers and sellers of energy commodities on an exchange. As an energy trader, you trade futures, which are a contract to purchase some asset at a future time. For energy traders, the asset you contract is generally some amount of liquid gas, oil, or natural gas. Much like a stockbroker, your responsibilities include tracking commodity prices, predicting market trends and changes, and making informed decisions on what purchases or sales will make the most profit. Commodity traders make most of their money from commissions, so staying on top of research is crucial in this field.

How to Become an Energy Trader

To become an energy trader, you need a bachelor’s degree in finance or a related field. However, many employers prefer a masters degree, in addition to the required licensing. A finance background is crucial, and you should also study an energy-related field, or even pursue a degree in the subject. Regardless of your education, you should work to develop strong negotiation and interpersonal skills. To trade any commodities on an exchange, you need to pass the Series 3 exam from the NFA, gaining the title of “Associated Person.”