14_presentation on commodity trading

8/9/2019 14_presentation on Commodity Trading

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A Presentation On ,

COMMODITY TRADING


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What is Commodity trading ?What is Commodity trading ?

It is a market where primary products areIt is a market where primary products are

exchanged. Such as Gold, Silver, Agriculturalexchanged. Such as Gold, Silver, Agricultural

commodities, Metals, Crude etc.commodities, Metals, Crude etc.

Types of Commodity ExchangesTypes of Commodity Exchanges

NCDEX (National Commodity andNCDEX (National Commodity and

Derivative Exchange)Derivative Exchange)

MCX (MultiMCX (Multi--Commodity Exchange).Commodity Exchange).


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History of Commodity Trading

The first recorded instance of futures trading occurred

with rice in 17th Century in Japan.

The Chicago Board ofTrade was established in 1848

In the 1870s and 1880s the New York Coffee, Cotton

and Produce Exchanges were born.

The biggest increase in futures trading activity occurred

in the 1970s when futures on financial instruments started

trading in Chicago.


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Commodity Trading also provides hedging, trading andarbitrage opportunities to market players. The FMC is the

regulatory body for Commodity Trading in futures/forward

trade in India.

The FMC has its headquarters in Mumbai and the regional

office is located at Kolkata.

There are some 21 commodity exchanges in India. But most

of these commodity exchanges are regional, offline and

commodity specific.

The government has recently allowed four national level

multi-commodity exchanges to trade in all permitted

commodities

ABOUT COMMODITY TRADING


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Types of Commodities

Precious Metals : Gold and Silver

Base Metals : Copper, Zinc, Steel

Energy : Crude oil, Natural Gas

Pulses : Chana, Urad

Spices : Jeera,Turmeric,Cardamom

Others : Guar Seed and Guar Gum


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Commodity Trade Learning

Commodity trading is basically a exposed to

ideas plus practical experience watching the

market on a day to day basis.

For further details need to refer the books of

commodity trading, as the process is to befollowed on the day to day market activity.


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Indias commodity trading to gain $1.25 trillion

Turnover on Indian commodity exchanges led by MCE of

India ltd.

India will increase the maximum positions that traders may

hold in agricultural commodities

May reach Rs 50 trillion ($1.26 trillion) in the year from April

as rule changes boost trading in sugar and soybean oil.

BC Khatua, chairman of the Forward Markets Commission.


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ABOUT NCDEX

NCDEX is an online commodity exchange based in India.

It is a closely held Pvt.Ltd incorporated on 23rd April2003,under the companies Act,1956.

It received its Certificate for Commencement of Businesson 9th May 2003.

It is regulated by FMC in respect of futures trading incommodities.


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ABOUT MCX

MCX is an independent commodity exchange based inIndia.

It was established in 2003 and is based in Mumbai.

It has an average daily turnover of around US$1.55billion.

It features amongst the worlds top three bullionexchanges and top four energy exchanges.


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NCDEX TOP GAINERS/LOSERS

GAINERSCommodity Closing Price BARLEY JAIPUR 1178.80

SILVER DELHI 21297.00

TURMERIC NIZA. 3807.00

LOSSERS

Commodity Closing Price SUGAR-KOLHAPUR 1725.00

STEEL MILD-GHAZI. 30890.00

GUR-NEW-MUZZ. 648.40


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MCX TOP GAINERS /LOSERS

GAINERSCommodity Closing Price NICKEL 823.50

NATURAL GAS 371.40

COPPER 317.20

CRUDE OIL 5010.0

LOSSERS

Commodity Closing Price PLATINUM 20991.0

LEAD 73.35

CARDAMOM 738.50


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ADVANTAGES OF COMMODITY TRADING

Leverage

Ability to go short

No Time Decay

There are no balance sheets, no complicatedfinancial statements----all you have to do is

follow the supply and demand position of the

commodities you trade in very closely.


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LATEST NEWS OF COMMODITY TRADING

FMC is likely to raise price for jeera and turmeric

ZINC output capacity to rise 14%

Copper price dip part of larger commodities retreat.

Analysts expect bumper output for soybean

Tea export decline 29% in FY08.


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Chicago Board of Trade Future Market


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Thank You

Presented By

Furkan Y.Kamdar

14_presentation on commodity trading

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