What Is Fondant Paper?

What position is the best in commodities crude oil trading, physical or paper?

• ABOUT ME: - Good understanding of crude oil market, financial markets, financial products (especially options). - No experience in commodities physical/paper trading. - 1 experience as IT quant (equities). - 2 trainees as trader assistant (equities). - Living in France (Paris), willing to be based in a foreign country (no matter elsewhere). CRUDE OIL PHYSICAL/PAPER TRADING JOB QUESTIONS: 1. Which places are best for applying for a Junior Oil Trader (Physical or Paper)? I noticed, in order of importance: Geneva, Houston, Singapore, London & NYC and then HK. Is this correct? 2. Which one get best salaries & bonuses (physical/paper)? Which areas/cities pays the best? 3. Which one get more job offers? 4. What are significant differences between both roles? (physical/paper) 5. How optimize my chances to integrate a trading house/bank/hedgefund to access to energy sector, especially crude oil and its derivatives, in an Junior Trader role? (anywhere)  6. Which amount of money is allocated for a Junior oil trader? Senior? 7. Which job is the best between physical and paper trader? Why? What are the work hours for both? 8. In case of oil paper/physical trading, which role is better: arbitragist or basis trader? 9. Does physical trading allows options strategies? Which volume compared to futures/forwards/EFP? Swaps & others? 10. Which level is required in IT for both physical and paper? 11. What kind of Risk Management skills are required for both positions? 12. I heard physical trading requires to start from the bottom with a Compliance and then Scheduler position to get enough background to become Junior Trader and then Senior Trader. Is this true? 13. In which proportion we have to visit customers as physical/paper oil junior/senior trader role? 14. Does physical trading requires more interactions with customers? (more phone calls) 15. In physical oil trading, what are the differences between trading oil transported by pipeline/tanker/railway? Which way is more profitable for a trader? 16. I heard about physical traders exchanging informations all day eachothers more than in paper trading. Is this true? Why trying to get (qualitative) information from competitors? I know how is important to preserve good relationships with competitors but I don't understand in what they would have to give me critical informations for free. 17. I learnt at school Black formula was used to price options based on commodities. What do we use (mathematically) to price physical crude oil cargoes? I heard about some basic techniques but I'm pretty surprised of this pratiques and the precision (far away from Monte Carlo pricing formula). Could you tell me more about this? 18. Does hedging strategies differs between physical and paper trading? I worry a little about working laws in USA. No warning in case of firing, no package. No holidays except public ones? What about those cases at Geneva, Singapore, London, HK? Notice: please answer only if you do know about these positions. Keep the numerated frame for more clarity. NB: If you're interested by my profile and want to get my CV, PM me. Do not hesitate. I'll be very interested to answer your questions about my profile. I am going to apply for one of these positions (or both) this week.

• Answer:

  Physical leaves you fewer potential employers going forward whereas paper can be traded by anyone.