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TRADE IN COMMODITY DERIVATIVES WITH
INVENTURE COMMODITIES LTD.,
Experience the New World
Through
INVENTURE COMMODITIES LIMITED
What is commodity Exchange?
• A Commodities exchange is an exchange where various commodities and derivatives products are traded. Most commodity markets across the world trade in agricultural products and other raw materials (like, Jeera, sugar,, Chilli, Chana, Energy Sector Crude oil, Metals-Copper, Zinc, Lead, Bullions-Gold, Silver, etc.) and contracts based on them. These contracts can include spot prices, forwards, futures and options on futures. Other sophisticated products may include interest rates environmental instruments, swaps, or ocean freight contracts.
What is a future Trading
Commodities exchanges usually trade futures contracts on commodities, such as trading contracts to receive something, say Gold, in a certain month. A Jeweler gathered Gold can sell a future contract on his Gold, which will be available in huge quantity in market for several months in futures due to any reason (Like Recession or etc..), and guarantee the same sold price he will be get when he delivers; a Customer buys the contract of Gold now and guarantees the price will not go up when it is delivered. This protects the Jeweler from price drops and the buyer from price rises.Speculators and investors also buy and sell the futures contracts in attempt to make a profit and provide liquidity to the system. However, due to the leverage provided by the exchange to traders those participating in commodity futures trading face substantial amounts of speculative risk.
In finance, a futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today (the futures price or the strike price) but with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange. The party agreeing to buy the underlying asset in the future, the "buyer" of the contract, is said to be "long", and the party agreeing to sell the asset in the future, the "seller" of the contract, is said to be "short". The terminology reflects the expectations of the parties -- the buyer hopes the asset price is going to increase, while the seller hopes for a decrease. Note that the contract itself costs nothing to enter; the buy/sell terminology is a linguistic convenience reflecting the position each party is taking (long or short).
CONT……
THE HISTORY OF COMMODITY EXCHANGES
• The world's oldest established futures exchange, the Chicago Board of Trade, was founded in 1848 by 82 Chicago merchants. The first "to arrive" contracts were flour timothy hay "Forward "arrive flour, seed and hay. Forward contracts on corn were introduced in 1851.
• The Chicago Mercantile Exchange, was founded as the Chicago Butter and Egg Board in 1898.
• Most of the exchanges in the developing World were established in the 1980s and 1990s in response to government liberalization of commodity markets.
• In the 21st century, online commodity trading has become increasingly popular, and commodity brokers offer front-end interfaces to trade these electronic-based markets.
Source: As per the data compiled from the respective exchange website
LARGEST COMMODITY EXCHANGE IN THE WORLD
0100200300400500
DETAILS…
Exchanges Places Sites
Shanghai Futures Exchange Shanghai (www.shfe.com.cn )
CME Group/Chicago Chicago (www.cmegroup.com)
Dalian Commodity Exchange CHINA (www.dce.com.cn )
The Zhengzhou Commodity Exchange (ZCE) CHINA (http://english.czce.com)
Intercontinental Exchange Europe (www.theice.com)
MCX India (http://www.mcxindia.com/)
London Metal Exchange- London (http://www.lme.com/)
INTRODUCTION OF COMMODITY MARKET IN INDIA
INDIAN COMMODITY MARKETS
Commodity Markets have their presence in country for over 120 yrs.
Trade in commodities has been Unorganized in Regional markets & Local Mandis.
Trading in Futures Contracts has been permitted in over 120 commodities.
Physical commodity market size in India is estimated to be around 25 lacs crore per annum.
Major commodities traded in India are - Gold, Silver, Crude Oil, Copper, Guar, Chana, Spices, among the few.
11
EVOLUTION OF COMMODITY MARKETS IN INDIA
• Ban in forward trading from mid-sixties • Prior to ban
– Thriving commodity exchanges for cotton, gold, edible oils etc.– more than 20 regional commodity specific exchanges
• Recent developments– Ban completely lifted in 2003– Emergence of national level de-mutualised online multi-
commodity exchanges– 3 National and 21 regional exchanges– Trade in 60 commodities compared with just 8 in 2000
• Growth exceeds 7-8 times in FY09 over FY10
FUTURES & SPOT MARKET IN INDIA
FuturesMCX (Multi Commodity Exchange)NCDEX (National Commodity & Derivative
Exchange) &NMCE (National Multi-commodity Exchange)ICEX ( Indian Commodity Exchange)
SpotNSEL(SPOT)NCDEX Spot Exchange Ltd. (NSPOT)
REGIONAL EXCHANGES
Ahmadabad Commodity Exchange First Commodity Exchange of India Ltd, Kochi
The Bikaner Commodities Exchange Limited Haryana Commodities Ltd., Hissar
The Bombay Commodity Exchange Ltd The Indian Pepper and Spice Trade Association
Bhatinda Om & Oil Exchange Ltd., Bhatinda The Meerut Agro Commodities Exchange Co. Ltd., Meerut
The Central India Commercial Exchange Ltd, Gwalior National Board of Trade Limited
The Chamber of Commerce Rajdhani Oils and Oilseeds Exchange Ltd. , Delhi
E-Commodities Ltd The Rajkot Seeds oil & Bullion Merchants` Association Ltd
The East India Cotton Association Surendranagar Cotton oil & Oilseeds Association Ltd
The East India Jute & Hessian Exchange Ltd, The Spices and Oilseeds Exchange Ltd.
& Vijay Beopar Chamber Ltd., Muzaffarnagar
20 Other Regional Exchanges
NMCE
Commodity Exchanges
MCX
STRUCTURE OF INDIAN COMMODITY FUTURES EXCHANGES
National exchanges
Regional exchanges
FMC (Forward Markets Commission)
NBOTNCDEX ICX
Bullions Metals Energy
GOLD
SILVER
COPPER
ZINC
LEAD
NICKEL
CRUDE OIL
NATURAL GAS
COMMODITIES TRADE ON EXCHANGES
Pulses Spices Grains
Chana Jeera
Pepper
Turmeric
Dhaniya
Wheat
Maize
Barley
Also Trade in - Sugar, Vegetables Soya bean
CONT…..
RELATIONSHIP BETWEEN CLIENTS AND GOVERNMENT
Clients
Commodity ExchangesMCX/NCDEX
FMC (Forward Markets Commission)
Brokers ( Inventure Commodities Ltd.)
Huge No of Investor
Process for trading (non-physical)
• Open Trading account• Deposit money for meeting margin
requirements. Margins are usually:– Mark to market payments
• Take a position in the commodity• Liquidate the position by squaring up.
Process for trading
Open Trading Account
Documents
Pan card also can use for identity proof too
Address Proof
Bank Proof
Process for trading
Deposit money for meeting margin requirements. Margins are usually:
Daily marginsMark to market payments
Offline Trading
Online Trading
The increasingly popular activity of buying and selling Commodities/securities over the internet, or to a lesser extent, through a our proprietary software.
DEMO OF TRADING
Basis of Trading
Should Purchase 100Gm Gold
If gold CMP is Rs.23000, Then10 present of lot value .i.e. 23000.
Bullions •10.AM TO 11.30 PM
Metal •10.AM TO 11.30 PM
Energy •10.AM TO 11.30 PM
Agri •10.AM TO 5.00 PM
MARKETING TIMING
INVENTURE COMMODITIES LTD.,
• Promoted by Inventure Group• Member of NCDEX,MCX & NMCE.• Offers trading in a wide range of
commodities.
SUPPORT FOR BUSINESS DEVELOPMENT
• RMS: We have expert RMS team to monitor your client’s trades.
• Dealing: will provide you support for dealing.
• Research: Daily we are sending out 12-15 research calls with accuracy of around 70%.
• Call Example- Range Trading>> Buy Gold@ 20612-20622 with S/L 20590for the Target 20660 then 20670, S/l-Stop loss
• Will provide you training for clearing currency certification at office every Saturday in collaboration with exchange.
• Pricing will be as per F&O segment.
CURRENCY TRAINING
CREATED ID
• To be in touch with the prospect and existing business holder
• For any query regarding Commodity & Currency.. C&[email protected],
• For chatting
[email protected], Where all can come to share their view for developthe business.
START TRADING
Double up your Revenue
with same cost and infrastructure
.
LETS DO IT !!!!TO TAKE ADVANTAGE OF
THIS ASSET CLASS.
THANK YOU!!
Sudhakar RaiIn charge – Commodities/Currency.Tel (Off): 91 22 39548500, EXT-579.Mobile : 09987215190,Email:[email protected]
Join Us!
Member :
NSE, BSE, MCX, NCDEX,
NMCE
Depository Participant:
CDSL
Regd. Office : 201, Viraj Tower, Near Landmark constructing, W.E. Highway, Andheri(E),Mumbai- 400069.
Telephone : 91-22-39548500Fax : 91-22-40751535
Corporate Office : 201, Viraj Tower, Near Landmark constructing, W.E. Highway, Andheri (E),Mumbai- 400069.
Telephone : 91-22-39548500, Fax : 91-22-40751535
Website: Email:www.inventuregrowth.com C&[email protected],
