NCFM CERTIFICATION FOR COMMODITY MARKET MODULE
Course Highlights
Interactive
Classes
Doubt
Sessions
Supplementary
Study Materials
Practical
Sessions
Life Time
Assistance
What is Commodity Market?
The commodity market is a market where traders buy and sell commodities like precious metals, crude oil, natural gas, energy, and spices, among others. Trading in commodities is great for investors seeking to diversify their portfolio, as these investments often help with inflation.
Objective
The aim of this module is to provide beginners as well as the dealers with both theoretical and applied knowledge pertaining to commodities market. This course aims at providing knowledge about various processes like clearing, settlement and risk management. This course also provide glimpse of usage and price mechanism of commodity futures, NCDEX trading platform, eligibility criteria of membership at NSE and other important regulatory and taxation aspects of commodities market.
Benefits
After completion of the course, an individual will have complete information about all the terminologies of the Indian commodity market. An individual will have a true and clear picture regarding the process of commodity market like clearing and settlement, risk management, operational mechanism etc. An individual will have clear understanding about the usage and price mechanism of commodity futures, NCDEX trading platform, eligibility criteria of membership at NSE and other important regulatory and taxation aspects of commodities market. The syllabus covers all the topics with interactive sessions. Moreover the contents of the course covers all the topics for NCFM ( NSE ACADEMY’S Certification in Financial Markets ) : Commodity Certification Examination and makes every student capable of cracking it.You will be well prepared for the NCFM examination.
Intended Participants​
Anybody having interest in the Commodities Market Anybody (Retail Traders, New Investors, Students, Researchers, Financial Service Professionals, Commodity Market Dealers, hedgers, arbitrageur or any individual) having interest in the Commodity market and its operation and want to enhance his/her knowledge, overall productivity or want to build their career in this market are welcome. As not only we provide theoretical knowledge, but also practical application, mentoring and training guidance, to help each student achieve their goals for investing or trading.
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Introduction to Derivatives
- Derivatives Defined
- Products, Participants and Functions
- Derivatives Markets
- Difference between Commodity and Financial Derivatives
Commodity Derivatives
- Evolution of Commodity Exchanges
- Global Commodity Derivatives Exchanges
The NCDEX Platform
- Structure of NCDEX
- Spot Price Polling
- Exchange Membership
- Risk Management
- Clearing and Settlement System
Commodities Traded on the NCDEX Platform
- Commodities Traded on NCDEX
- Contract Specifications
Instruments Available for Trading
- Forward Contracts
- Futures Contract
- Option Contract
- Basic Payoffs
- Payoff for Futures
- Payoff for Options
- Using Futures Versus Using Options
Pricing Commodity Futures
- Investment Assets Versus Consumption Assets
- The Cost of Carry Model
- The Futures Basis
Using Commodity Futures
- Hedging
- Speculation
- Arbitrage
Trading
- Futures Trading System
- Entities in The Trading System
- Commodity Futures Trading Cycle
- Order Types and Trading Parameters
- Margins for Trading in Futures
- Charges
- Hedge Limits
- Broad SEBI Guidelines Issued In 2016 for Hedging
Clearing and Settlement
- Clearing
- Settlement
- Cash Settlement
- Risk Management
Regulatory Framework
- The Securities Contract Regulation Act 1956
- Rules Governing Commodity Derivatives Exchanges
- Rules Governing Intermediaries
- Rules Governing Investor Grievances, Arbitration
Taxes
- Commodity Transaction Tax (CTT)
- Taxation Updates Post 2018-19 Budget
- Goods and Services Tax (GST)
Electronic Spot MARKET
- Need for Electronic Online Spot Market
- Service