Curriculum
- Introduction to Commodity Markets
- History of Commodity Trading
- Spot and Derivatives Trading in Commodities
- Major Commodities Traded in Derivatives Exchanges in India
- Participants in Commodity Derivatives Markets
- Commodities Trading vis-à-vis Trading in Other Financial Assets
- Commodity Markets Ecosystem
- Commodity Market Indices
- Factors Impacting the Commodity Prices
- Commodity Futures
- Introduction to Futures
- Distinction between Forwards and Futures
- Cost-of-Carry
- Convergence
- Fair Value of a Futures Contract
- Convenience Yield
- Commodity Futures and Commodity Forwards
- Pay-off profile for Futures Contracts
- Spot Price Polling
- Commodity Options
- Introduction to Options
- Option Terminology
- Pay off Profiles of Options Contracts
- Determinants of Option Premium
- Options on Commodity Futures
- Uses of Commodity Derivatives
- Hedging
- Long Hedge and Short Hedge Strategy: Using Futures
- Speculation
- Arbitrage
- Spread Trading
- Basis
- Option Trading Strategies
- Trading Mechanism
- Membership on Commodity Derivatives Exchange
- Trading System in Commodity Derivatives Exchanges
- Selection Criteria of Commodities for Trading on Derivatives Exchanges
- Contract Specifications for Various Commodity Derivatives Contracts
- Profit/Loss per Contract for a Change of One Tick
- Order Types and Conditions
- Tracking Commodity Futures and Options prices
- Clearing Settlement and Risk Management of Commodity Derivatives
- Clearing and Settlement
- Delivery Process
- Entities Involved in the Clearing and Settlement Process
- Premium/Discount
- Penalty for Delivery Default by the Seller
- Deliveries in the Case of Physical Delivery
- Risk Management for Exchange Traded Commodity Derivatives Markets
- Position Limits and Computation of Open Position
- Salient Features of Risk Containment Measures
- Margin Mechanism
- Accounting and Taxation
- Important Accounting Aspects related to Trading in Commodity Derivatives
- Guidance Note Issued by ICAI on Accounting Treatment of Derivative Transactions
- Important Tax Aspects related to Trading in Commodity Derivatives
- Legal & Regulatory Environment of Commodity Derivatives in India
- Regulatory Structure of Commodities Market
- Securities Contracts (Regulation) Act, 1956
- Securities and Exchange Board of India Act, 1992
- SEBI’s Code of Conduct for Brokers
- Risk Disclosure to Client and KYC
- Investors Grievance Redressal Mechanism