Download or read book Indian Commodity Derivative Market written by Devajit Mahanta and published by . This book was released on 2016 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Derivative is a financial instrument whose value is derived from some other asset called the underlying. In commodity derivative markets raw products are traded. These commodities are traded on regulated commodity exchanges, in which they are bought and sold in standardized contracts. This study is interesting in as much as it provides a detailed analysis of commodity derivatives which were traditionally developed for risk management purposes are now growing in popularity as an investment tool. Also by critically examining the demarcation between the commodity and the security market, this book puts in perspective the need for the integration of the two markets, which would enable both the markets to benefit from economies of scale and also from the synergy generated.
Download or read book Performance Of Commodity Derivatives Market In India An Analytical Study written by Dr. Shaik masood and published by Archers & Elevators Publishing House. This book was released on with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Indian Commodity Market written by and published by Serials Publications. This book was released on 2010 with total page 806 pages. Available in PDF, EPUB and Kindle. Book excerpt: Papers presented at the Workshop cum Seminar on "Indian Commodity Market Derivatives & Risk Management : the Road Ahead", held at Puducherry during 11-12 September 2009.
Download or read book Commodity Derivatives Trading written by Madhoo Pavaskar and published by Notion Press. This book was released on 2016-10-11 with total page 389 pages. Available in PDF, EPUB and Kindle. Book excerpt: Despite the long and chequered history of commodity derivatives trading in this country, extending for more than century and a half, neither the lay nor the learned, including, surprisingly, most economists and even those involved in regulation of commodity derivatives exchanges, betray lack of knowledge on the theory, working, utility, and regulation of trading in commodity derivatives of diverse hues. It is against this background, the present book is aimed at teaching the commodity derivatives exchanges, their participants, the regulator s, and the students of commodity derivatives economics and managements, both the theory and regulation of commodity derivatives trading in all its aspects. For, a commodity economy like India must aim to develop strong global commodity derivatives markets in the country to promote swift growth in agriculture, industry, and international trade by strengthening competition and competitive efficiency to improve productivity, as also proficiency in marketing in all sectors of the economy. This book is a modest step towards achieving that aim and objective.
Download or read book Spot and Future Trading in Commodity Derivatives Market written by Rakhi Ranjith and published by Meem Publishers. This book was released on 2023-07-22 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Spot and Future Trading in Commodity Derivatives Market, explores the dynamics and behavior of selected commodities in the context of both spot and future trading. Commodity derivatives markets play a crucial role in modern economies, providing essential instruments for managing price volatility and hedging risks related to various commodities. This research delves into the complexities of spot trading, where commodities are bought and sold for immediate delivery, as well as future trading, which involves contracts for the future delivery of commodities at predetermined prices. By focusing on specific commodities, the study aims to offer valuable insights into their supply and demand dynamics, pricing patterns, and how market participants use derivative instruments to manage their exposures. Through a combination of data analysis, market observations, and financial models, the study seeks to highlight the relationships between spot and future prices, as well as the impact of various market factors on both segments. Additionally, the research may investigate the role of speculation and the behavior of traders in influencing price movements in these commodity markets. The findings of this are expected to contribute to a better understanding of commodity derivatives markets, their functioning, and their implications for traders, producers, and consumers alike. Furthermore, the research may provide practical implications and recommendations for market participants seeking to make informed decisions related to commodity trading, risk management, and investment strategies.
Download or read book Commodity Markets and Derivatives written by and published by Excel Books India. This book was released on with total page 337 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book COMMODITY DERIVATIVES AND RISK MANAGEMENT written by PRABINA RAJIB and published by PHI Learning Pvt. Ltd.. This book was released on 2014-01-17 with total page 458 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over the last decade, commodity derivatives trading in India has undergone a significant growth, and has surpassed equity derivatives trading. The book covers almost the entire spectrum of commodities traded in the Indian commodity market, including agricultural commodities, crude oil, base metal, precious metal, electricity, carbon, weather, freight, real estate, and water. A distinguishing feature of the book is that it lucidly explains the peculiarities of various commodities, delving into their technical and historical details. As commodity market in a country cannot function in isolation, commodity contracts traded in other international exchanges, like LME, CME, The Baltic Exchange, Nordpool, etc. have also been discussed in detail. Commodity derivatives contracts, such as futures, FRAs, options, Tapos, swaps, spreads (crush, crack, dark and spark), collars, ETFs, Contract for Differences (CfDs) and cool bonds, etc. have been discussed extensively in the book. Fundamental factors associated with different types of commodities have been dealt with to develop a deeper understanding of the peculiarities associated with various commodities. This book documents the case studies involving important commodity price manipulations and frauds in commodity derivatives trading. These have been analyzed to bring out the necessity and the role of the commodity market regulators in maintaining market integrity. Major commodity derivatives trading losses that have shaken up even some prominent companies all over the world have been discussed to highlight the risks associated with commodity derivatives trading. The book is intended for the postgraduate students of Management. It is equally beneficial for the students and professionals opting for Diploma courses in Banking and Finance.• Around 40 Business Snapshots have been presented at appropriate sections in the book, so that a reader can apply the concepts to real-life situations/happenings. • Around 100 Numerical Examples have also been worked in various chapters to help the reader develop a deeper understanding of the underlying theories. • Worked out examples and business snapshots have been provided in large numbers. • End of the chapter questions have been provided for the students to test their understanding. • Power Point slides available online at www.phindia.com/prabinarajib to provide integrated learning to the students.
Download or read book The Indian Commodity derivatives Market in Operation written by J. N. Dhankhar and published by . This book was released on 2005 with total page 545 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Price Gouging of Futures on Commodity Indices in India written by Naresh Gopal and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Market participants in derivatives market will continue to make wild speculation because their only goal is to make profit, and the more artificial demand they create, the more commodity prices will rise artificially away from the levels justified by the market fundamentals. Hence, the price in the futures market is not based on actual supply and demand figures. The government suspends futures trading in commodities as soon as it suspects that such trading may affect adversely the prices of those commodities to the detriment of one or the other class of society. However, the government regularly fails to find a solution to the price gouging in commodities. But one must look at what actions can be taken in the short run in order to stabilize the economy in the long run. The chequered futures trading in commodities only leads to suspicion among the practitioners, market participants, policy makers, economists and academicians too. Thus, it is necessary to revisit whether the algorithmic trading in futures contracts is seriously affecting the underlying spot contracts whereby the futures prices cause the underlying spot prices in Indian commodities market, by using Panel Cointegration and Error Correction Models.
Download or read book An Insight Into the Commodity Derivative Markets written by and published by . This book was released on 2006 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: With special reference to India.
Download or read book Changing Regulatory Landscape for Commodity Derivatives Trading in India Implications and the Way Forward written by Rose Mary K. Abraham and published by . This book was released on 2015 with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt: Every major crisis in the financial sector points to the varied patterns of market failures and results in eventual reorganization of markets and its regulatory architecture. Last three years have been a watershed in the history of commodity trading in India. A reform drill started by around mid 2012 accelerated with the payment crisis at one of the commodity spot exchanges in July 2013, and has culminated in 2015, in the merger of commodity market with securities market. This paper narrates the set of events and rationale that led to the decision to merge the regulator of commodity market - Forward Market Commission (FMC) - with the securities market regulator - Securities and Exchange Board of India (SEBI) and the implications that decision has on the future contours of commodities markets in India. The article also highlights the learnings from the ensued events, against the contemporary debates on regulating commodity markets.
Download or read book Commodity Futures Markets in India written by Alok Kumar Mishra and published by . This book was released on 2008 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: Commodity derivatives play a pivotal role in the price risk management process especially in any agricultural surplus country. As unique hedging instruments derivatives such as forwards, futures, swaps, options and exotic derivative products are extensively used in the global market. However, Indian market is limited to commodity futures only. The present study is an investigation into the present status, growth constraints and developmental policy alternatives for commodity futures markets in India. The study has surveyed the various publicly available websites of recognized commodity exchanges and their organizational and the regulatory set up for futures trading. Also, as the factors that drive commodity prices are observed to be different from the factors that drive equity prices, commodities are perceived to be effective diversifying agents. This study explores the advantages of adding commodities to a portfolio of equities in Indian context based on empirical data and quantifies the diversification benefit and downside risk protection the commodities offer in portfolio context. The study concluded that the less-than-perfect or negative correlation of commodities with equities makes them an excellent candidate for diversification. This diversification benefit was demonstrated in two ways. First, it was observed that by adding commodity futures to a portfolio of equities enhance the risk-adjusted return of a portfolio. Second, it was observed that adding commodity futures to equity portfolios provides a significant downside protection and enhances skewness and kurtosis of the return distribution.
Download or read book Institutional Investors in Indian Commodity Derivative Markets Prospects for the Future written by Lakshmi Kalyanaraman and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Government of India is contemplating allowing the Institutional investors like Foreign Institutional Investors, Mutual funds and Banks to trade in a few selected products of commodity derivatives markets in India. This paper argues that if the institutional investors are allowed to operate in all the products of the commodity derivative markets, it has implications for both the liquidity and broad basing of commodity derivatives markets given the assets under management of these investors. Their entry into commodity derivatives markets is also expected to benefit them given the portfolio diversification opportunities. This paper discusses the implications of the grant of permission to these institutional investors to operate in commodity derivative markets.
Download or read book Commodity Futures Market in India written by Suchismita Bose and published by . This book was released on 2008 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: The main purpose of the present study would be to look into some characteristics of the Indian commodity futures market in order to judge whether prices indicate efficient functioning of the market or otherwise, particularly as this market is less developed compared to the financial derivatives markets, being constrained by its chequered history with many policy reversals. Using the available notional price indices for the commodity market we find that multi-commodity indices, which have higher exposure to metals and energy products, with clear and efficient price dissemination in national and international markets, behave like the equity indices in terms of efficiency and flow of information. Both the contemporaneous futures and spot prices contribute to price discovery and the futures market can provide information for current spot prices and thus help to reduce volatility in the spot prices of the relevant commodities and provide for effective hedging of price risk. Agricultural indices on the other hand do not exhibit such features very clearly. Our results also help to build a case for opening up of parts of the Indian agricultural futures market.
Download or read book Commodity Derivative Market and its Impact on Spot Market written by Golaka C. Nath and published by . This book was released on 2008 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: Nation wide trading in commodities futures in India was introduced for many agricultural commodities and later trading in futures was banned for few commodities due to pressure on spot prices of these commodities. The paper studies the impact of futures trading in three important commodities which were banned by the government from trading in futures and their impact on spot prices. The study uses simple linear regressions, correlations, Granger Causality tests to find the answer. The study also tries to find if the seasonal/cyclical fluctuations in these commodities prices have been affected by the introduction of futures in those commodities. Hodrick-Prescott filter is used to differentiate the general trend and seasonal/cyclical fluctuations in prices. The study finds that in India future trading in the selected commodities had apparently led to increase in prices of commodities like urad. It also increased the volatilities in the spot market.
Download or read book Commodity Derivatives written by Iibf and published by . This book was released on 2007-02-01 with total page 404 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book covers the entire syllabus of two papers, viz., Commodity Derivatives and Commodity Trading of Diploma in Commodity Derivative Examination, conducted by Indian Institute of Banking and Finance. All ardent learners of finance as also the professi
Download or read book Effect of Futures Trading on Spot Market Volatility written by Brajesh Kumar and published by . This book was released on 2011 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study investigates the relationship between futures trading activity and spot market volatility for agricultural, metal, precious metals and energy commodities in Indian commodity derivatives market. This article contributes to the debate whether the futures trading in Indian commodity futures market stabilizes or destabilizes spot market. We explore this issue by modeling contemporaneous as well as dynamic relationship between spot volatility and futures trading activity including trading volume (speculative/day trading) and open interest (hedging). Following Bessembinder and Senguin (1992), we examine contemporaneous relationship through augmented GARCH model in which spot volatility is modeled as GARCH (1,1) process and trading activity is used as explanatory variable. We also decompose futures trading volume and open interest series into expected and unexpected component. The lead-lag relationship between spot price volatility and futures trading volume and open interest is investigated through VAR model. Granger causality tests, forecast error variance decompositions and impulse response function are used to understand the dynamic relationship between these variables. We found that both expected and unexpected futures trading volume affects contemporaneous spot volatility positively. However, in case of agricultural commodities only unexpected volume affects the contemporaneous spot volatility. Granger causality tests, forecast error variance decompositions and impulse response function confirm that the lagged unexpected volatility causes spot price volatility for all commodities. The effect of speculative/day trading activity measured by trading volume on spot market volatility is positive. However, hedging activity measured by open interest does not show significant effect on spot market volatility. We do not find any effect of spot volatility on futures trading activity for most of the commodities.
