Certified Commodity Trader

Course details

Vskills Certified Commodity Trader is for beginner's pursuing career in commodities market. The certification focuses on imparting the necessary domain knowledge to acquaint the candidate with the operations and functionalities of commodities and derivative market in India. Commodity markets have a significant growth potential with the ability to benefit from rapid Indian economic growth, government initiatives and widening market participation.

Why should one take this certification?
The certification provides an understanding of commodity market and the practical aspects of commodities trading. The certification gives a visible recognition for your knowledge and is also beneficial for working professionals and people looking for a new job or promotion or simply more responsibility. The certification works as an added qualification on your CV and significantly improves your chances of getting the desired role.

Who will benefit from taking this certification?
The certification is beneficial for traders, research analysts, dealers, investors, treasury managers as well as students looking forward for a career in this sector.

TABLE OF CONTENT

Introduction to Commodity Markets

• Commodity Exchanges in India
• Global Commodity Markets
• History of Commodity Derivatives in India
• Policy Initiatives
• Structure of the Indian Commodity Market
• Parties of a Commodity Exchange & Trading
• Latest Development
• Benefits of Commodity Markets

Commodity Exchange Markets

• The Role of Commodity Exchanges
• List of Commodity Exchanges in India
• Types of Commodities Traded in India
• Active Commodities & Contracts on MCX
• Active Commodities & Contracts on the NCDEX

Segments in Commodity Markets

• OTC Markets
• Exchange Traded Commodities
• Spot Markets
• Difference between Spot Vs Forward Transaction
• Exchange traded VS OTC

Derivatives

• Products
• Functions
• Clearing and Settlement System
• Participants
• Types of Derivatives Markets

Commodity and Financial Derivatives

• Physical settlement
• Delivery & Assignment
• Warehousing
• Forward Contracts
• Introduction to Futures
• Pricing Commodity Futures
• Using Commodity Futures

Hedging and Speculation

• Methods of Hedging
• Short Hedge
• Long Hedge
• Hedge Ratio
• Advantages and Disadvantages of Hedging
• Speculation: Bullish Commodity, Buy Futures
• Advantages and Disadvantages of Speculation

Introduction to Options

• Difference between Futures and Options
• Option Terminology
• Types of Market Analysis

Trading

• Futures Trading System
• Entities in the Trading System
• Commodity Futures Trading Cycle
• Order Types and Trading Parameters
• Order Entry on the Trading System
• Margins for Trading in Futures
• Charges
• Hedge Limits

Clearing and Settlement

• Clearing
• Settlement
• Warehousing
• Indicative Warehouse Charges of NCDEX

Warehousing

• Warehousing and commodity exchange
• Quality of assets and functions
• Role of an approved Registrar & Transfer agent and Assayer
• Indicative warehouse charges

Risk Management & Margining

• Calculating Initial Margin

Electronic Spot Exchange

• Need for electronic Spot exchange
• NCDEX Spot Exchange Ltd (NSPOT)
• National Spot Exchange Ltd (NSEL)
• Constitution
• Trading
• Membership
• Advantages

Regulatory Framework

• Rules Governing commodity derivatives exchanges/participants
• Rules Governing Trading & Clearing on the Exchange
• Rules Governing Investor Grievances, Arbitration
• Implications of VAT

Updated on 31 January, 2019