The Iron Ore Derivatives Trader will be responsible for running a discretionary derivatives book while also supporting the hedging of physical iron ore exposure. The role requires strong market intuition, disciplined risk management and the ability to operate across screen-based trading and flow-driven physical hedging.
This is a true P&L-owning role, with defined risk limits and direct accountability for performance.
Key Responsibilities
Derivatives Trading (Spec & Flow)
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Trade iron ore derivatives across:
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SGX / CME iron ore futures
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Options, spreads and structure trades
Run a proprietary risk book, taking directional and relative value positions
Identify and execute arbitrage, calendar spreads, quality spreads and volatility strategies
Manage intraday and longer-dated risk within agreed limits
Physical Hedging & Commercial Support
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Hedge physical iron ore exposures arising from:
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FOB / CFR cargoes
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Offtake agreements
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Term contracts and spot sales
Structure hedge strategies aligned with:
Cargo timing and quality
Pricing windows and index exposure
Freight and basis risk
Work closely with physical traders, originators and logistics teams to optimise overall margin
Market Analysis & Strategy
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Monitor iron ore fundamentals including:
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Supply disruptions and mine output
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Chinese demand, steel margins and inventories
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Freight, port stocks and arbitrage flows
Develop trading views informed by macro, flows and positioning
Contribute to house market views and scenario analysis
Risk Management & Governance
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Manage VaR, stress scenarios and drawdown limits
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Ensure positions are correctly booked, reconciled and reported
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Work closely with risk, middle office and compliance
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Maintain disciplined stop-loss and position sizing practices
Product & Market Development (Optional)
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Support expansion into related markets (freight, steel, coking coal, options structures)
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Contribute to improving hedging frameworks and derivatives usage across the physical business