There are mainly two types of futures trading contracts available in a futures market as those require a physical delivery and those require a cash settlement. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. Two Major Commodities Exchange in India. Commodities traded on the exchanges.

COMMODITY FUTURES | Many PPT

What are Commodity futures? Purpose of Futures Markets. Commodity Futures Market — Participants. Risks encountered by industry. Short Hedge - Example. Short Hedge- Example contd….

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Introduction of commodity market in india

Home Users Business Fashion Health Science News More Topics. About Commodity Future Market India PowerPoint Presentation. Email Presentation to Friend. Create Presentation Download Presentation.

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Description Statistics Report There are mainly two types of futures trading contracts available in a futures market as those require a physical delivery and those require a cash settlement. Copyright Complaint Adult Content Flag as Inappropriate.

PPT - About Commodity Future Market India PowerPoint Presentation - ID

Snapshot of Indian Commodity Market. Commodities traded on the exchanges Agri Products: Jeera Gold Pepper Silver Chilli Platinum Turmeric Guar Seed Guar Gum Soya bean Sugar Maize.

Commodities traded on the exchanges Base Metals: Copper Crude oil Nickel Natural Gas Commodities trading futures market india ppt Zinc Aluminum Tin. Other Information Exchange Timings Agri Products: Futures Contract Expiry of Contracts: Different for different commodities.

A Financial Contract The underlying commodity is bought or belajar menjadi broker forex at a future date A tool used by Investors, Hedgers, Arbitrageurs, Day Currency converter rupee to australian dollar. Why futures trading in Commodities?

Purpose of Futures Markets Meet the commodities trading futures market india ppt of three groups of future market users Those who wish to discover information about future prices of commodities suppliers Those who wish to speculate speculators Those who wish to transfer risk to some other party hedgers Those who want to take advantage of price difference in different markets Arbitrageurs.

Commodity Trading |authorSTREAM

Commodity Futures Market — Participants Hedgers Producers — Farmers Consumers — Refineries, Food processing companies Speculators Institutional proprietary traders Brokerage houses Spot Commodity traders Arbitrageurs Brokerage houses Investors. Risks encountered by industry Price volatility depends on International market movement Results in higher procurement cost reducing operational margins No options or tools were available earlier Directionless market No control measures Counter party Risk Credit risk especially during periods of volatile prices Quantity risk during shortages Quality Risk.

Portfolio diversification and risk management Additional investment opportunity Physical trader: Low cost business No Transportation, storage, insurance, security Charges Domain knowledge of industry Traders: Hedging Purpose Avoid risk of adverse market movements Rationale Cash and Futures prices tend to move in tandem Converge at close to expiry Types of Hedges Long Hedge, Short Hedge Advantages Lock in a price and margin in advance Disadvantages Limits opportunities if prices move favorably.

Types of Hedging Long Hedge Hedges that involve taking a long position in futures contract Appropriate when a company plans to owns certain asset in the future Short Hedge Hedges that involve taking a short position in futures contract Appropriate when the hedger already owns the asset or likely to own the asset and expects to sell it in future.

Short Hedge - Example Suppose: There is an equal chances of price going up or down. There is a risk if price goes down.

Long Hedge- Example Scenario of consumer who wishes to lock input prices There is an equal chances of price going up or down. There is a risk if price goes up. Previous Presentation Types of Folding Doors at Lordship Windows Ltd.

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