A trade house is a company that specializes in buying, selling, and trading physical commodities globally, often providing logistics, financing, and risk management services. Major trade houses like Glencore, Trafigura, and Cargill operate across multiple commodity sectors including energy, metals, and agricultural products.

Trade houses bridge producers and consumers while providing market liquidity, price discovery, and supply chain services. These companies often have significant storage, transportation, and processing assets that support their trading operations. Understanding trade house operations helps assess commodity market dynamics and supply chain influences.

Real-world example: Vitol, a major oil trade house, handles 7 million barrels per day of crude oil and products globally, providing logistics services, storage capacity, and market liquidity that influences global energy pricing and supply chains.