EXCHANGE TRADED COMMODITY FUTURES IN INDIA

Presented by:
Mukesh warankar 47
Shubhangi torane 46
Khushbu yadav 48
 CONCEPT OF COMMODITY FUTURES:

Commodities futures are agreements to buy or sell a raw material at a specific date in
the future at a particular price. The contract is for a set amount. The three main areas of
commodities are food, energy, and metals.

Commodities can be an important way to diversify a portfolio beyond

traditional securities – either for the long term or as a place to park cash during unusually
volatile or bearish stock markets, as commodities traditionally move in opposition to stocks.
EXCHANGES WHERE INDEX OPTIONS ARE
TRADED
 The most popular index option markets are:
Symbol Description Country
KOSPI KOSPI 200 Index Options Korea

DAX DAX 30 Index Options Germany

SPX S&P 500 Index Options USA

NDX NASDAQ 100 Index USA

Options
OEX S&P 100 Index Options USA

HSI Hang Seng Index Options Hong Kong

N225 Nikkei 225 Index Options Japan

FTSE FTSE 100 Index Options UK

 COMMODITY TRADING EXCHANGE IN INDIA

 MCX : ( Multi commodity exchange of India ltd)

 ICEX : (Indian commodity exchange)

 NCDEX : (National commodity & Derivatives Exchange)

VARIOUS TYPES OF COMMODITY FUTURES EXAMPLES

 Metals (such as gold, silver, platinum, and copper)

 Energy (such as crude oil, heating oil, natural gas, and gasoline)

 Livestock and Meat (including lean hogs, pork bellies, live cattle, and feeder cattle)

 Agricultural (including corn, soybeans, wheat, rice, cocoa, coffee, cotton, and
sugar)
COMMODITY FUTURES EXAMPLES EXPLANATION
 CATEGORY - METAL : (COPPER)
 Description : COPPERMMMYY

 Trading Period : Mondays through Friday

 Trading Session : Monday to Friday: 09.00 a.m. to 11.30 p.m. / 11.55 p.m*

 Trading Unit : 2500 Kilograms (2.5 MT)

 Base value : 1 Kg

 Contract Expiry : September 2019 January 2020

October 2019 February 2020

 CATEGORY- ENERGY : (CRUDEOIL)

 Description : CRUDEOILMMMYY

 Trading Period : Mondays through Fridays

 Trading Session : Monday to Friday: 9.00 a.m. to 11.30/ 11.55 p.m.*

 Trading Unit : 100 barrels

 Base Value : Rs. Per barrel

 Maximum Order Size : 10,000 barrels

 Contract Expiry : Jan-20 22nd July 2019 17th January 2020

Feb-20 20th August 2019 19th February 2020

Mar-20 20th September 2019 19th March 2020

 CATEGORY- AGRICULTURE : (SOY BEAN)

 Ticker symbol : SYBEANIDR

 Unit of trading : 10 MT
 Maximum Order Size : 500 MT
 Base value : Rs per quintal
 Tick size : Rs. 1
 Contract Expiry : September 2019 No launch
October 2019 March 2020
November 2019 April 2020
December 2019 May 2020
 COMMODITY FUTURES AND ITS EXPIRY
Expiry date is the date, as the name suggests, on which a particular contract
(usually a derivative contract) expires. Every derivative contract, which is based
on an underlying security such as a stock, commodity, or a currency, has an
expiry date, though the underlying security usually does not have any expiry
date.
A commodity futures contract is a standardized binding agreement
between two parties to buy or sell a commodity at a later date. A futures contract
can only trade on an exchange through a public auction where participants place
bids and offers in a competitive marketplace. A trade occurs when two parties
agree on a price for the commodity futures contract.
PAY OF DIAGRAM
Purchase Market Pay-off
200
Price movement Pay-off Put Pay-off Total Payoff
150
1000 850 -150 145 -5
100
1000 900 -100 95 -5
50
1000 950 -50 45 -5
0 Pay-off
1000 1000 0 -5 -5 850 900 950 1000 1050 1100 1150
-50
1000 1050 50 -5 45
-100
1000 1100 100 -5 95
-150
1000 1150 150 -5 145 -200
THANK YOU