Most people who try to break into commodity trading fail for the same reason: they don't understand the commercial structure of a physical transaction.

They learn about prices. They watch futures markets. They read about oil, wheat, copper. But they have no idea how a real deal actually gets done — who the counterparties are, how contracts work, how title transfers, how payment is secured, and how the originator gets paid.

Here's what a commodity trade originator actually does:

1. Find a buyer and a seller for a physical commodity.

Not a retail buyer. A company — a refinery, a food processor, a manufacturer — that needs real goods delivered to a real location on a real schedule.

2. Structure the transaction.

Price basis (spot, futures-indexed, fixed). Delivery terms (Incoterms). Payment terms (LC, CAD, open account). Quality specs. Inspection. This is where 90% of wannabe traders get exposed.

3. Manage execution.

Logistics, shipping, documentation (bill of lading, phytosanitary certificates, COAs). Goods move from A to B. Payment flows correctly.

4. Earn your commission.

On a €500,000 deal, a 1–2% origination margin is €5,000–€10,000. On repeat business at scale, this compounds into a serious income.

The reason people fail: they skip steps 2 and 3. They think "connecting" buyers and sellers is like making a sales intro. It's not. It's a structured commercial process — and counterparties will not work with someone who doesn't know what they're doing.

That's what we teach at ITA Academy. Not theory. The actual commercial process, from first contact to closed transaction, in Europe's physical commodity markets.

Join the free ITA Community if you want to learn more.