Definition of Commercial trader:
A classification used by the Commodity Futures Trading Commission (CFTC) to describe traders that use the futures market primarily to hedge their current business activities. For example, when a trader invests in a commodity which he/she believes will increase in price, he/she may invest in a futures contract to lock in a specific price in the event he/she is wrong.
A commercial trader can refer to any trader who trades on behalf of a business or institution.
In the commodities market, the Commodity Futures Trading Commission (CFTC) has a special classification for commercial traders and describes them as traders that use the futures market primarily to hedge their business activities.
How to use Commercial trader in a sentence?
- In the commodity markets, the CFTC publishes the weekly Commitments of Traders report which reveals the position sizes of commercial and non-commercial traders.
- In the commodity markets, the CFTC defines a commercial trader as someone who uses the futures market to primarily hedge their business activities.
- A commercial trader is any trader who trades on behalf of a business or institution.
Meaning of Commercial trader & Commercial trader Definition