A physical trader that can be individual or any firm buying or sells any product or service physically from producers to later supply to its customer, consumer, and processors, often physical trader involves used by-products such as options to hedgerow and futures and also form the commodity price and schedule movements accordingly.

Trading Commodity Spreads

Commodity trading involves in physical trading in which a physical trader involves in sales and purchase of contract that will happen in the future in this type of trading derivatives and physical trading are also commonly used
There is a huge difference between paper trading and physical trading as in paper trading there is no real money put in it and just the trading without moment involved, as per international research and studies paper trading always happen without any physical commodity or asset meaning the trade that is buying and selling of commodity happen without physical asset or commodity in holdings such as funds and banks
There is the barrier in physical trade this type of barrier is a natural barrier like deserts, rainforest and mountain vary from condition to condition and regions to regions.
There are different types of commodity market that existed that deal with physical trade in which spot market in which everything including delivery of the commodity and bought and sold done immediately and on the spot, physical contracts of money are the best example for that also if it is something like cotton then the location, quality, and quantity) everything needs to be mentioned
Future trading is the type of trading in which the amount of commodity or asset is very large and due to this large participation price is also discounted and also this type of trading done physically or partially physical depends on buyer or seller
Future markets have to look up for these conditions. Price, quality, quantity, delivery procedures, location, and place

Forward market: It is type of market in which there is no third party involved and trading takes place between buyer and seller directly, the term such as quality and quantity price and delivery date and also each negotiation is done between both of them with anyone else involvement

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