Quote from chief_editor on January 17, 2026, 7:44 am

In commodity and energy trade, many people believe a “good deal” should feel smooth: quick responses, minimal questions, fast document exchange, and immediate confirmations.

In real markets, serious transactions often feel the opposite.
They introduce friction — deliberately — and they do it step by step.

This friction is not bureaucracy.
It is how real deals protect themselves from fraud, non-performance, and expensive operational failure.

Friction Is How Trade Creates Trust

Most international commodity trades happen between parties who have never worked together before. They may be in different jurisdictions, subject to different regulations, and operating with large values under time pressure.

In this environment, trust is not assumed.
It is engineered.

Friction is the mechanism. Each small requirement forces a counterparty to reveal whether they are real, capable, and aligned.

Real deals use friction to turn intention into commitment.

The Step-by-Step Logic

A well-structured deal does not demand everything at once. It sequences verification so that effort increases only as credibility increases.

Typical step-by-step friction looks like this:

Step 1: Identity and authority
Before price debates or logistics, parties confirm who they are and who can sign. This is basic, but many fake deals fail here.

Step 2: Controlled offer escalation
SCO may be used for early interest, but progression requires an FCO. This introduces corporate accountability. Fake sellers often stall at this step.

Step 3: Buyer seriousness test
ICPO, KYC, or proof of execution capability is requested. This filters out “talkers” and non-performing buyers.

Step 4: Contract drafting
Only once both sides have demonstrated seriousness does the SPA drafting and negotiation begin.

Step 5: Operational and financial execution
Shipping, inspection, payment schedules, and customs processes follow the contract, not the other way around.

Each step is friction. Each step is a gate.

Why Real Sellers Want Friction

Real sellers do not want maximum interest. They want executable interest.

Friction helps sellers avoid:

• endless inquiries from brokers

• counterparties who cannot pay

• buyers who disappear after getting pricing

• reputational exposure from deal chaos

A seller who introduces friction is often doing you a favor: they are signaling that execution matters more than attention.

Why Real Buyers Want Friction

Serious buyers also prefer friction.

Friction protects them from:

• paying against non-existent supply

• mismatched documents at customs

• last-minute term changes

• operational surprises at discharge

Good buyers do not see friction as delay. They see it as cost control.

Why Fake Deals Hate Friction

Fake deals rely on momentum, not structure.

They prefer:
fast forwarding of SCOs
quick “confirmations”
pressure to move without verification

Friction breaks that illusion because it forces real-world commitments: names, signatures, bank-facing steps, and verifiable actions.

This is why introducing even mild friction often causes a fake deal to vanish.

The Hidden Benefit: Friction Saves Time

Many newcomers fear friction because they think it slows deals down.

In reality, step-by-step friction speeds up real business by cutting off non-real opportunities early. The time saved from avoiding dead-end conversations is often more valuable than the time spent on verification.

A Practical Rule of Thumb

If a deal feels frictionless from the beginning, be cautious.
If friction increases as commitment increases, that is often a sign of maturity.

Real deals do not remove friction.
They manage it.

Final Insight

In commodity trade, the goal is not to make a deal feel easy.
The goal is to make a deal executable.

Step-by-step friction is how real deals move forward safely.

Reference Note

This article reflects commonly observed practices in international commodity and energy trading. It is intended for industry insight and trade education purposes only.