About Commodities

Commodities course is designed for all those beginners as well as the dealers with both theoretical and applied knowledge pertaining to commodities trading. The module is beneficial for those who wish to pursue careers in brokerage firms dealing in commodity derivatives. This module has been developed jointly by NSE and NCDEX.

Why should one enroll in this course?
  • To understand the difference between commodity and financial derivatives.
  • To know the usage of commodity futures.
  • To understand the pricing mechanism of commodity futures.
  • To learn about the NCDEX trading platform, clearing and settlement operations.
  • To know the regulatory framework and taxation aspects of the commodities market.
Who will benefit from this course?
  • Students who are interested in this subject
  • Investors & Traders Lobby
  • Financial Planners & Advisors
  • House-wife's
  • Analysts
  • Equity Research professionals
  • Bankers & its Employee's
  • Teachers & Professionals
  • Employees of Stock Broking Company
Course Details

Duration: 30 hours (15 days)

Fees: Rs. 15000/-

Refund of fees: Rs.5000/- if examination cleared in first attempt.

Second attempt for examination additional: Rs. 2100/-

Contents of this course

Day 1 – Introduction To Derivatives
  • DERIVATIVES DEFINED
  • PRODUCTS, PARTICIPANTS AND FUNCTIONS
  • DERIVATIVES MARKETS
    1. Spot versus Forward Transaction
    2. Exchange Traded Versus OTC Derivatives
    3. Some commonly used Derivatives
  • DIFFERENCE BETWEEN COMMODITY AND FINANCIAL DERIVATIVES
    1. Physical Settlement
    2. Warehousing
    3. Quality of Underlying Assets
Day 2 – Commodity Derivatives
  • Evolution of Commodity Exchange
    1. Commodity Exchange
    2. Role of Commodity Exchange
    3. Commodity Derivative Markets in India
    4. Indian Commodity Exchange
  • Global Commodity Derivatives Exchange
  • Latest Developments
Day 3 – The NCDEX Platform
  • Structure of NCDEX
    1. Shareholders of NCDEX
    2. Governance
    3. NCDEX Products
    4. Innovations at the Exchange
  • SPOT price Polling
    1. Polling and Bootstrapping
    2. Cleansing of data
    3. Outsourcing of Polling
    4. Validation & Checks on the Polling Processes
    5. Independence of the polling agency
  • Exchange Membership
    1. Capital Requirements
  • Risk Management
  • Clearing and Settlement System
    1. Clearing
    2. Settlement
    3. Clearing Days & Scheduled Time
Day 4 – Commodities Traded On The NCDEX Platform
  • Commodities Traders on NCDEX
Day 5 – Instruments Available For Trading
  • Forwards Contracts
    1. Limitations of Forward Contracts
  • Introduction to Futures
    1. Distinction between Futures and Forward Contracts
    2. Futures Terminology
  • Introduction to Options
    1. Option Terminology
  • Basic Payoffs
    1. Payoff for Buyer of Asset: Long Asset
    2. Payoff for Seller of Asset: Short Asset
  • Payoff for Futures
    1. Payoff for Buyer of Asset: Long Asset
    2. Payoff for Seller of Asset: Short Asset
  • Payoff for Options
    1. Payoff for Buyer of Call Options: Long Call
    2. Payoff for Writer of Call Options: Short Call
    3. Payoff for Buyer of Put Options: Long Put
    4. Payoff for Writer of Put Options: Short Put Butterfly Spread
  • Using Futures versus using Options
Day 6 – Pricing Commodity Futures
  • Investments Assets versus Consumption Assets
  • The Cost of Carry Model
    1. Pricing Futures Contracts on Investment Commodities
    2. Pricing Futures Contracts on Consumption Commodities
  • The Futures Basics
Day 7 – Using Commodity Futures
  • Hedging
    1. Basic Principles of Hedging
    2. Basic Principles of Hedging
    3. Long Hedge
    4. Hedge Ratio
    5. Advantages of Hedging
    6. Limitation of Hedging: Basis Risk
  • Speculation
    1. Speculation: Bullish Commodity, Buy Futures
    2. Speculation: Bearish Commodity, Sell Futures
  • Arbitrage
    1. Overpriced Commodity Futures: Buy Spot, Sell Futures
    2. Underpriced Commodity Futures: Buy Futures, Sell Spot
Day 8 – Trading
  • Futures Trading System
  • Entities in the Trading System
    1. Guidelines for Allotment of Client Code
  • Commodity Futures Trading Cycle
  • Order Types and Trading Parameters
    1. Permitted Lot Size
    2. Tick size for contracts & Ticker symbol
    3. Quantity Freeze
    4. Base Price
    5. Price Ranges of Contracts
    6. Order Entry on the Trading System
  • Margins for Trading in Futures
  • Charges
  • Hedge Limits
Day 9 – Clearing And Settlment
  • Clearing
    1. Clearing Mechanism
    2. Clearing Banks
    3. Depository Participants
  • Settlement
    1. Settlement Mechanism
    2. Settlement Methods
    3. Entities involved in Physical Settlement
  • Risk Management
  • Margining at NCDEX
    1. Span
    2. Initial Margin
    3. Computation of Initial Margin
    4. Implementation Aspects of Margining and Risk Management
    5. Effect of Violation
Day 10 – Regulatory Framework
  • Rules Governing Commodity Derivatives Exchanges / Participants
  • Rules Governing Trading of Exchange
    1. Trading
    2. Clearing
  • Rules Governing Investor Grievances, Arbitration
    1. Procedure for Arbitration
    2. Hearings and Arbitral Award
Day 11 – Implications of Sales Tax/Value Added Tax (VAT)
  • Sales Tax / Vat
  • Sales Tax / Vat Obligations
    1. Settlement on account of Sales Tax/VAT
    2. Sales Tax/VAT Invoice
Day 12 – Electronic Spot Exchange
  • Need for Electronic Online Spot Exchange
  • NCDEX Spot Exchange Ltd (NSPOT)
    1. Constitution of NCDEX Spot Exchange
    2. Trading
    3. Membership
    4. Advantages
Day 13 – Recap & Revision
Day 14 – Recap & Revision
Day 15 – Recap & Revision

FAQ's

1. 1. You are eligible for a refund until the course / specialization launches on the platform however kindly note 25% reduction will be done on the amount paid if applied for cancellation.

2. You are not eligible for a refund after earning a Course Certificate, even if you complete a course in a short period.

3. Rs.5000/- will be refunded as a token of reward if examination is cleared in first attempt.

Yes—to enroll in an individual course, search for the course title in the catalog.

Yes, kindly contact Nathani Finance

15 Days Classroom Training

1 Day for Examination

New Batch admission will start every month.

No specific background is required for this course, anybody can join having interest in this Industry.

Although you can take the courses in any order, however we do recommend that you follow the suggested sequence of courses

Yes, Successful candidates will be rewarded the Certificate by the below mentioned organisations post clearing the exams.

Nathani Institute Pvt. Ltd.

National Institute of Securities Markets

{OR}

National Stock Exchange Ltd.