Why should I take this certification?
Vskills Certified Commodity Trader is for beginners pursuing career in commodities market. The certification focuses on imparting the necessary 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. The certification provides an understanding of commodity market and practical aspects of commodities trading.
How will I benefit from 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. Vskills Certified Commodity Trader can look forward for rewarding career opportunities with commodities exchanges, retail firms, banks, mutual funds, broking firms, FMCG companies etc.
The required skills may vary for each area but candidate must possess sound fundamental knowledge & skills to analyze and examine market and make necessary reports together with presentation skills.
Suggested Courses
Commodity Trader Table of Contents
https://www.vskills.in/certification/certified-commodity-trader-table-of-contents
Commodity Trader Tutorial
http://vskills.in/certification/tutorial/accounting-banking-finance/certified-commodity-trader/
Commodity Trader Practice Test
https://www.vskills.in/practice/commodity-trader
Commodity Trader Interview Questions
https://www.vskills.in/interview-questions/commodity-trading-interview-questions
Companies that hire Commodity Traders
Motilal Oswal, Angel Broking, Kotak Commodities, Edelweiss, Reliance Commodities, Tata Capital, Zerodha etc.
Commodity Related Blogs
Checkout the latest online blogs on Commodity Trading.
Commodity Trader Jobs
Checkout the various job openings for Commodity Traders, click here..
Commodity Internships
Vskills runs its flagship internship programme where bright interns work with academic council, click to know more details..
Apply for Commodity Trader Certification
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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
COURSE OUTLINE
Introduction to Commodity Markets
- Explains the role of commodity exchanges in India
- Discusses the global commodity markets across the world and their emergence
- Discusses the evolution of commodity markets in BRIC Nations
- Discusses the history of commodity derivatives in India
- Discusses the various policy initiatives regulating forward contracts in commodities all over India
- Describes the structure of the Indian commodity market and their roles respectively
- Describes the role of various players in the commodity exchange & trading system
- Discusses the future prospects, growth and latest development in the commodity exchange market in India
- Explains the benefits of commodity markets in India
Commodity Exchange
- Discusses the role of commodity exchanges in India facilitating trade
- Describes the chief commodity exchanges in India – NCDEX, MCX, NMCEIL, ICEX
- Discusses various types of commodities traded in India and their categorization
- Discusses the active commodities and contracts on MCX and NCDEX
Segments in Commodity Markets
- Explains the role of OTC markets and their functioning
- Discusses the various exchange traded commodities
- Discusses the functioning of spot markets, difference between spot & Forward transaction and exchange traded and OTC
Derivatives
- Explains the meaning of derivatives and their function
- Discusses the various products and instruments categorized as derivatives
- Discusses the functions and benefits of derivatives
- Describes the role of the various participants trading in the derivatives market
- Discusses the types of derivatives markets - Financial and Commodity derivative market
- Difference between commodity and financial derivatives on the basis of physical settlement, delivery & assignment, warehousing etc.
Commodity Derivatives
- Explains the role and features of forward contracts
- Discusses the limitation of forward market and contracts
- Explain futures and standard features of future contracts
- Explains the differences between future and forward contracts
- Illustrates the various terminologies used in future contracts
- Discusses the difference between investment assets and consumption assets
- Discusses the process of pricing commodity futures
- Discusses the process and features of pooling and bootstrapping
- Discusses the Cost of Carry Model
- Discusses the process of pricing future contracts on investment and consumption commodities
- Explains the various methods of using commodity futures
Hedging , Speculation and Arbitrage
- Explains the purpose, methods of hedging
- Explains the meaning, purpose and benefits of short hedge and long hedge
- Discusses the mechanism of hedge ratio
- Discusses the advantages and limitations of hedging
- Discusses advantages and disadvantages of hedging
- Explains the meaning of speculation and optimal speculation strategies
- Discusses the advantages and disadvantages of speculation
- Discusses the concept of arbitrage and mechanism to implement arbitrage theory
Options
- Describes the concept of option and various option terminologies
- Discusses the difference between futures and options
- Discusses the different approached used to perform market analysis – Technical, fundamental, quantitative and sentimental analysis
Trading
- Discusses the functionalities of futures trading system
- Discusses the various entities involved in the trading system such as TCM, PCM, STCM
- Discusses the guidelines outlined for the allotment of client code
- Explains the commodity futures trading cycle
- Discusses the different order types and the required conditions or trading parameters to be fulfilled to enter trading system
- Explains the meaning of each order entry on the trading system and their functionalities
- Explains the process of placing order, maintaining order books and understanding net position
- Explains the margins for trading in futures and the types of margins applicable to future trading in commodities
- Discusses the various charges involved in trading through exchange such as transactional charges, collection, due date charges etc
- Explains the hedging policy and the assignment of hedge limits and the prescribed conditions
Clearing and Settlement
- Explains the three components involved in commodities exchange – Trading, clearing and settlement
- Explains the process of clearing, role of clearing houses, mechanism of clearing, need of clearing banks and functions of depository participants
- Explains the process of settlement, types of settlement, different types of settlement price, settlement mechanism and methods of settlement
Warehousing
- Explains the concept of warehousing in terms of commodity exchange, applicable guideline
- Discusses the quality of underlying assets and functions of a warehouse
- Explains the role of an approved Registrar & Transfer agent and approved Assayer
- Discusses the indicative warehouse charges of NCDEX
Risk Management & Margining
- Explains the mechanism of managing risk in future market
- Discusses the regulations and procedures for margins and limits applicable to members and their clients
- Discusses the computations of initial margins using SPAN system
- Illustrates the implementation aspect of margining and risk management
- Explains the effect of violation
Electronic Spot Exchange
- Discusses the need for electronic spot exchange
- Discusses the role and constitution of NCDEX Spot Exchange Ltd (NSPOT)
- Discusses the role and constitution of National Spot Exchange Ltd (NSEL)
- Explains the process of trading, functionalities of the trading platform and the memberships offered
- Illustrates the advantages of Electronic Spot Exchange to farmers, traders, arbitrageurs and future exchanges
Regulatory Framework
- Discusses the rules governing commodity derivatives exchanges / participants
- Discusses the rules governing trading & clearing on the exchange
- Discusses the rules governing investor grievances, arbitration
- Discusses the implication of VAT such as settlement on account of VAT, raising invoice
