Commodities and financial futures ppt

Basics of Futures Trading and Trading Platforms to Choose From - Futures trading is a form of investment which involves speculating on the price of a commodity going up or down in the future. This presentation explains the basics of futures trading and some of the challenges a new trader may face. TYPES OF FUTURES CONTRACTFutures contracts can be broadly classified into 2 categories Commodities futures Financial futures 3. Commodity futures Metals Major metals traded with futures contracts include copper, gold, platinum, palladium and silver, which are listed on the New York Mercantile Exchange which has merged with the Chicago Mercantile Exchange. Energy The most popular energy futures contracts are crude oil, crude palm oil, heating oil and natural gas. Forwards and Futures on Commodities have special features Forwards and Futures traded in the market Physical forward delivers physical every day for a month, like an average of the spot price NYMEX futures, settles on physical forwards NYMEX Lookalike forwards, settles on NYMEX future price at expiry

Financial Futures Exchange in 1982. The Forwards Contracts (Regulation). Act, 1952, regulates the forward/futures contracts in commodities all over. India. Derivatives are financial contracts whose value is linked to the value of an the spot prices of the futures can serve as an approximation of a commodity price. However, beginning in the 1970s, new financial products Once the US Commodities Futures Trading  Financial Markets, Washington DC, U.S.A., who helped clarify concepts and important instruments of commodity price risk management: forwards, futures, 

The assets often traded in futures contracts include commodities, stocks, and bonds. Grain, precious metals, electricity, oil, beef, orange juice, and natural gas are traditional examples of commodities, but foreign currencies, emissions credits , bandwidth, and certain financial instruments are also part of today's commodity markets.

Financial Markets, Washington DC, U.S.A., who helped clarify concepts and important instruments of commodity price risk management: forwards, futures,  In the case of forward currency contracts, the amount of commodity to be A three-month sterling deposit on the London International Financial Futures  In a currency future market, currency futures are quoted as the foreign currency Producers for commodity futures and investors for financial futures participate in the Trading floors have always been more interesting than PowerPoint slides. efficient financial and commodity exchange markets are important for growth as well as later futures trading; that even futures exchanges will need to have a  This chapter is organized into the following sections: Forward Contracts Versus Futures Contracts Institutions Facilitating Futures Trading Structure of Futures Exchanges Clearinghouses’ Role in Futures Markets Types of Futures Contracts The Social Function of Futures Markets Futures Markets’ Regulatory Framework and Taxation Forward Contracts A forward contract is an agreement between two parties (counterparties) for the delivery of a physical asset (e.g., oil or gold) at a certain time Basics of Futures Trading and Trading Platforms to Choose From - Futures trading is a form of investment which involves speculating on the price of a commodity going up or down in the future. This presentation explains the basics of futures trading and some of the challenges a new trader may face. TYPES OF FUTURES CONTRACTFutures contracts can be broadly classified into 2 categories Commodities futures Financial futures 3. Commodity futures Metals Major metals traded with futures contracts include copper, gold, platinum, palladium and silver, which are listed on the New York Mercantile Exchange which has merged with the Chicago Mercantile Exchange. Energy The most popular energy futures contracts are crude oil, crude palm oil, heating oil and natural gas.

Forwards and Futures on Commodities have special features Forwards and Futures traded in the market Physical forward delivers physical every day for a month, like an average of the spot price NYMEX futures, settles on physical forwards NYMEX Lookalike forwards, settles on NYMEX future price at expiry

commodity market both in India and at a global level. Since this research is focused on the inter relationship of the spot and futures market, a decription of the features of the commodity market in India is given in this chapter. Broadly, the discussion on the market structure, role Commodity trading dates back to agrarian societies. Trading agricultural commodities got underway in an organised way in the US when the Chicago Board of Trade (CBOT) was established in 1848. Farmers traded commodity futures with speculators on the CBOT to lock in harvest prices in advance. It continued to expand over the following century,

Forwards and Futures on Commodities have special features Forwards and Futures traded in the market Physical forward delivers physical every day for a month, like an average of the spot price NYMEX futures, settles on physical forwards NYMEX Lookalike forwards, settles on NYMEX future price at expiry

Forwards and Futures on Commodities have special features Forwards and Futures traded in the market Physical forward delivers physical every day for a month, like an average of the spot price NYMEX futures, settles on physical forwards NYMEX Lookalike forwards, settles on NYMEX future price at expiry CBOT T-bond futures, for example, have a tick of 1/32nd of one percent. Since a single contract represents a $100,000 face value bond, the tick size equals $31.25. Traders frequently talk in terms of ticks to express profits or losses on a trade. For example, the value of a tick in CBOT muni bond futures is $31.25. OTC and Exchange Traded Derivatives. 1. OTCOver-the-counter (OTC) or off-exchange trading is to trade financial instruments such as stocks, bonds, commodities orderivatives directly between two parties without going throughan exchange or other intermediary.• The contract between the two parties are privately negotiated.• CHAPTER II COMMODITIES MARKET: AN OVERVIEW 2.1 INTRODUCTION role played by the growing presence of financial investors in commodity markets. central government, the regulation and development of the commodities futures markets were defined. In December 1952, the Forward Contracts (Regulation) Act was enacted by Fundamental analysis is a means of examining commodities in an attempt to predict the future path of least resistance for prices. The basis for fundamental analysis is supply and demand. When looking at prices of a commodity, the concept of supply and demand amounts to a simple equation. Futures prices are delayed 10 minutes, per exchange rules, and are listed in CST. Time Frames. Choose from one of two time-frames from the drop-down list found in the data table's toolbar: Intraday - Intraday prices by commodity will always show prices from the latest session of the market. The 's' after the last price indicates the price has settled for the day. A commodity futures contract is an agreement to buy or sell a predetermined amount of a commodity at a specific price on a specific date in the future. Commodity futures can be used to hedge or protect an investment position or to bet on the directional move of the underlying asset.

Basics of Futures Trading and Trading Platforms to Choose From - Futures trading is a form of investment which involves speculating on the price of a commodity going up or down in the future. This presentation explains the basics of futures trading and some of the challenges a new trader may face.

Basics of Futures Trading and Trading Platforms to Choose From - Futures trading is a form of investment which involves speculating on the price of a commodity going up or down in the future. This presentation explains the basics of futures trading and some of the challenges a new trader may face. TYPES OF FUTURES CONTRACTFutures contracts can be broadly classified into 2 categories Commodities futures Financial futures 3. Commodity futures Metals Major metals traded with futures contracts include copper, gold, platinum, palladium and silver, which are listed on the New York Mercantile Exchange which has merged with the Chicago Mercantile Exchange. Energy The most popular energy futures contracts are crude oil, crude palm oil, heating oil and natural gas.

CBOT T-bond futures, for example, have a tick of 1/32nd of one percent. Since a single contract represents a $100,000 face value bond, the tick size equals $31.25. Traders frequently talk in terms of ticks to express profits or losses on a trade. For example, the value of a tick in CBOT muni bond futures is $31.25. OTC and Exchange Traded Derivatives. 1. OTCOver-the-counter (OTC) or off-exchange trading is to trade financial instruments such as stocks, bonds, commodities orderivatives directly between two parties without going throughan exchange or other intermediary.• The contract between the two parties are privately negotiated.• CHAPTER II COMMODITIES MARKET: AN OVERVIEW 2.1 INTRODUCTION role played by the growing presence of financial investors in commodity markets. central government, the regulation and development of the commodities futures markets were defined. In December 1952, the Forward Contracts (Regulation) Act was enacted by Fundamental analysis is a means of examining commodities in an attempt to predict the future path of least resistance for prices. The basis for fundamental analysis is supply and demand. When looking at prices of a commodity, the concept of supply and demand amounts to a simple equation.