commodities presentation Inventure

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Transcript of commodities presentation Inventure

Slide 1

Trade In Commodity Derivatives With

Inventure Commodities Ltd.,Experience the New WorldThroughINVENTURE COMMODITIES LIMITEDWhat 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).CONTThe History of Commodity ExchangesThe 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 websitelargest commodity exchange in the world7DetailsExchangesPlacesSitesShanghai Futures ExchangeShanghai (www.shfe.com.cn )CME Group/Chicago Chicago(www.cmegroup.com)Dalian Commodity ExchangeCHINA(www.dce.com.cn )The Zhengzhou Commodity Exchange (ZCE)CHINA(http://english.czce.com)Intercontinental ExchangeEurope(www.theice.com)MCXIndia(http://www.mcxindia.com/)London Metal Exchange- London(http://www.lme.com/)8

Introduction of Commodity Market in IndiaIndian Commodity MarketsCommodity 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.

11Evolution of Commodity markets in IndiaBan in forward trading from mid-sixties Prior to banThriving commodity exchanges for cotton, gold, edible oils etc.more than 20 regional commodity specific exchangesRecent developmentsBan completely lifted in 2003Emergence of national level de-mutualised online multi-commodity exchanges3 National and 21 regional exchangesTrade in 60 commodities compared with just 8 in 2000Growth exceeds 7-8 times in FY09 over FY10Futures & Spot Market in IndiaFuturesMCX (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 ExchangesAhmadabad Commodity ExchangeFirst Commodity Exchange of India Ltd, KochiThe Bikaner Commodities Exchange LimitedHaryana Commodities Ltd., HissarThe Bombay Commodity Exchange LtdThe Indian Pepper and Spice Trade AssociationBhatinda Om & Oil Exchange Ltd., BhatindaThe Meerut Agro Commodities Exchange Co. Ltd., MeerutThe Central India Commercial Exchange Ltd, GwaliorNational Board of Trade LimitedThe Chamber of CommerceRajdhani Oils and Oilseeds Exchange Ltd. , DelhiE-Commodities LtdThe Rajkot Seeds oil & Bullion Merchants` Association LtdThe East India Cotton AssociationSurendranagar Cotton oil & Oilseeds Association LtdThe East India Jute & Hessian Exchange Ltd,The Spices and Oilseeds Exchange Ltd. &Vijay Beopar Chamber Ltd., Muzaffarnagar20 Other Regional Exchanges

NMCE

Commodity ExchangesMCX

Structure of Indian Commodity Futures ExchangesNational exchangesRegional exchangesFMC (Forward Markets Commission)NBOT

NCDEX

ICX

BullionsMetalsEnergyGOLDSILVERCOPPERZINCLEADNICKELCRUDE OILNATURAL GAS

Commodities Trade On ExchangesPulsesSpicesGrainsChanaJeeraPepperTurmericDhaniyaWheatMaizeBarleyAlso Trade in - Sugar, Vegetables Soya bean

Cont..Relationship between Clients and GovernmentClientsCommodity ExchangesMCX/NCDEXFMC (Forward Markets Commission)Brokers ( Inventure Commodities Ltd.)Huge No of InvestorProcess for trading (non-physical)Open Trading accountDeposit money for meeting margin requirements. Margins are usually:Mark to market paymentsTake a position in the commodityLiquidate the position by squaring up. Process for tradingOpen Trading AccountDocuments

Pan card also can use for identity proof tooAddress Proof Bank Proof Process for tradingDeposit 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.

Marketing Timing

Inventure Commodities Ltd.,Promoted by Inventure GroupMember of NCDEX,MCX & NMCE.Offers trading in a wide range of commodities. Support for business developmentRMS: We have expert RMS team to monitor your clients 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 TrainingCreated IDTo be in touch with the prospect and existing business holderFor 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

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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] Us!

Member : NSE, BSE, MCX, NCDEX,NMCEDepository Participant:CDSLRegd. 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],