Risks
Commodity Price Volatility: Fluctuations in the prices of traded goods can significantly impact margins.
High Competition: Intense competition from numerous players can lead to pricing pressures and margin erosion.
Credit Risk: Risk of default by counterparties (buyers or sellers).
Forex Fluctuations: If involved in international trade, adverse movements in foreign exchange rates can impact profitability.
Economic Downturns: Recessions or slowdowns can reduce demand for traded goods.
Regulatory Changes: Changes in trade policies, tariffs, or import/export regulations.
Logistics & Supply Chain Disruptions: Issues in transportation, port operations, or warehousing can impact delivery and costs.