iil commodities (1)

8/3/2019 IIL Commodities (1)

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ITS ALL ABOUT MONEY, HONEY!


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Online Trading

Share Trading

Commodities Trading ( Future Market )

NCDEX MCX

Exchanges


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IIL and Commodities

IIL is a member of both the leading exchanges MCX / NCDEX

NCDEX MEMBER : 00378

MCX MEMBER : 10470


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Products

Agro Commodities

Metals

Precious Metals

Energy


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Commodity Trading( NCDEX & MCX )

Market Timing :

10 A.M to 5 P.M - ( Indian Commodities )

10 A.M to 11.30 P.M - ( International Commodities )

Driven by Demand and Supply


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Different Types of Market

Spot Market

Future Market

Forward Market


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Online Trading Concepts

HS

SELLBUY

LB

Buy Profit

LBHS

Sell Profit


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Rs.20

Rs.25

LB

HS

Buy Profit

Rs.20

HS

LB

Sell Profit


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Demand and Supply

Fundamental Technical Analysis

Human phy

Technical S/W


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Example for Demand and Supply

Example :-

Jul / AugDec / Jan

Rice

S / D

Rs.5Rs.20 Rs.25


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Rs.10,00,000

Example for Rice Physical Trading

Investment :

Rice Qty : 50 MT

Buy Rate = Rs. 20, Sell Rate = Rs. 25, Profit = Rs. 5

Profit = Rs. 2,50,000, Exp = Rs. 50,000,

NetProfit = Rs. 2,00,000

Jul / AugDec / Jan

RiceS / D

Rs.5Rs.20 Rs.25


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Rs.1,00,000

Example for Rice Online Trading

Investment :

Rice Qty : 50 MT

Buy Rate = Rs. 20, Sell Rate = Rs. 25, Profit = Rs. 5

Profit = Rs. 2,50,000, Exp = Rs. 1,500,

NetProfit = Rs. 2,48,500

Jul / AugDec / Jan

RiceS / D

Rs.5Rs.20 Rs.25


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Types of Trading

Day Trading

Swing Trading

Position Trading


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Trading Strategies

Hedging

Spread

Arbitrage


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Trading Strategies

Spread

Normal Market : ( Near Month Price < Far Month Price )

Spread is the difference between prices of two future contractsof the same underlying commodities

Future Market can be Normal Market or an Inverted Market

Inverted Market: ( Near Month Price > Far Month Price )


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Example for Spread

SPREAD OPPORTUNITY IN NCDEX REFSOYA OIL JUNE - JULYCONTRACT

450

455

460

465

470

475

480

485

490

495

500

10-Apr

17-Apr

24-Apr

1-May

8-May

15-May

22-May

29-May

5-Jun

12-Ju

n

19-Ju

n


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Trading Strategies

Arbitrage

C & C Arbitrage : ( Buy Cash Market & Sell Future Market )

Arbitrage is making purchase and sale simultaneously in twodifferent markets or two different Exchanges

Arbitrage

Reversal C & C Arbitrage : (Sell Cash Mkt & Buy Future Mkt)

Cash and Carry Arbitrage

Reversal Cash and Carry Arbitrage


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2400

2500

2600

2700

2800

2900

3000

3100

16-Dec

30-Dec

13-Jan

27-Jan

10-Feb

24-Feb

10-Mar

24-Mar

7-Apr

21-Apr

5-May

19-May

2-Jun

Ncdex Buy Rate Mcx Sell Rate

Example for Arbitrage


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Techinical Analysis

Techinical Analysis involves forecasting of future financial price movements based on the

study of the behavior of historical price movements

Techinical analysis does not result in absolute predictions about the future. Instead, it

helps anticipating what is Likely to happen to price over time.

A wide variety of charts and tools are used to show price over time

Techinical analysis is based on patterns of historical movement.

Combining fundamental and technical analysis will give us a better understanding ofthe market forces that are affecting the price movements in financial markets


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Techinical Analysis

There are mainly three types of chart, which is popularamongst analyst.

Candle stick

Bar Chart

Line Chart


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Techinical Analysis

Techinical analyst uses following information for chartingpurpose

Open, High, Low and Closing Price

Open Interest

Volume


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Potato Apr Contract

400

450

500

550

600

650

700

750

16-Nov

30-Nov

14-Dec

28-Dec

11-Jan

25-Jan

8-Feb

22-Feb

8-Mar

22-Mar

5-Apr


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Account Opening

Passport Size Photo

Address Proof

ID Proof

PAN Number

Bank Proof

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