Certified Commodity Trader

Introduction to Commodity Markets

• commodity Exchanges in India
• Global Commodity Markets
• History of Commodity Derivatives in India
• Policy Initiatives
• Structure of the Indian Commodity Market
• Parties of a Commodity Exchange & Tradin
• Latest Development
• Benefits of Commodity Markets

Commodity Exchange Markets

• The Role of Commodity Exchanges
• List of Commodity Exchanges in India
• Types of Commodities Traded in India
• Active Commodities & Contracts on MCX
• Active Commodities & Contracts on the NCDEX

Segments in Commodity Markets

• OTC Markets
• Exchange Traded Commodities
• Spot Markets
• Difference between Spot Vs Forward Transaction
• Exchange traded VS OTC

Derivatives

• Products
• Functions
• Clearing and Settlement System
• Participants
• Types of Derivatives Markets

Commodity and Financial Derivatives

• Physical settlement
• Delivery & Assignment
• Warehousing
• Forward Contracts
• Introduction to Futures
• Pricing Commodity Futures
• Using Commodity Futures

Hedging and Speculation

• Methods of Hedging
• Short Hedge
• Long Hedge
• Hedge Ratio
• Advantages and Disadvantages of Hedging
• Speculation: Bullish Commodity, Buy Futures
• Advantages and Disadvantages of Speculation

Introduction to Options

• Difference between Futures and Options
• Option Terminology
• Types of Market Analysis

Trading

• Futures Trading System
• Entities in the Trading System
• Commodity Futures Trading Cycle
• Order Types and Trading Parameters
• Order Entry on the Trading System
• Margins for Trading in Futures
• Charges
• Hedge Limits

Clearing and Settlement

• Clearing
• Settlement
• Warehousing
• Indicative Warehouse Charges of NCDEX

Warehousing

• Warehousing and commodity exchange
• Quality of assets and functions
• Role of an approved Registrar & Transfer agent and Assayer
• Indicative warehouse charges

Risk Management & Margining

• Calculating Initial Margin

Electronic Spot Exchange

• Need for electronic Spot exchange
• NCDEX Spot Exchange Ltd (NSPOT)
• National Spot Exchange Ltd (NSEL)
• Constitution
• Trading
• Membership
• Advantages

Regulatory Framework

• Rules Governing commodity derivatives exchanges / participants
• Rules Governing Trading & Clearing on the Exchange
• Rules Governing Investor Grievances, Arbitration
• Implications of VAT