Commodities and Currency trading strategies

Program

A commodity market trades in goods such as coffee, cocoa, and mined products such as gold and oil. Forex—the foreign exchange, also abbreviated as FX—is a global market that trades in currencies such as dollars, euros, and yen.

Many of the approaches and analysis of the two markets mirror one another.

SESSION 1: Commodity Derivatives

  • Difference between commodity and Financial derivatives
  • Physical settlement
  • Warehousing
  • Quality of underlying assets

SESSION 2: The Commodity Trading system

  • Trading
  • Clearing
  • Settlement

SESSION 3: Exploring various Commodities traded

SESSION 4: Agricultural commodities

  • Cotton
  • Crude palm oil
  • RBD Palmolein
  • Soy oil
  • Rapeseed oil
  • Soybean
  • Rapeseed

SESSION 5: Precious metals

  • Gold
  • Silver

SESSION 6: Instruments available for trading

  • Forward contracts
  • Limitations of forward markets
  • Introduction to futures
  • Distinction between futures and forwards contracts
  • Futures terminology

SESSION 7: Introduction to options

  • Option terminology

SESSION 8: Basic payoffs

  • Payoff for buyer of asset: Long asset
  • Payoff for seller of asset: Short asset
  • Payoff for futures
    • Payoff for buyer of futures: Long futures
    • Payoff for seller of futures: Short futures
  • Payoff for options
    • Payoff for buyer of call options: Long call
    • Payoff for writer of call options: Short call
    • Payoff for buyer of put options: Long put
    • Payoff for writer of put options: Short put
  • Using futures versus using options

SESSION 9: Pricing commodity futures

  • Investment assets versus consumption assets
  • The cost of carry model
    • Pricing futures contracts on investment commodities
    • Pricing futures contracts on consumption commodities
  • The futures basis

SESSION 10: Using commodity futures

  • Hedging
    • Basic principles of hedging
    • Short hedge
    • Long hedge
    • Hedge ratio
    • Advantages of hedging
    • Limitation of hedging: basis Risk
  • Speculation
    • Speculation: Bullish commodity, buy futures
    • Speculation: Bearish commodity, sell futures
  • Arbitrage
    • Overpriced commodity futures: buy spot, sell futures
    • Underpriced commodity futures: buy futures, sell spot

SESSION 11: Trading

  • Futures trading system
  • Entities in the trading system
    • Guidelines for allotment of client code
  • Contract specifications for commodity futures
  • Commodity futures trading cycle
  • Order types and trading parameters
    • Permitted lot size
    • Tick size for contracts
    • Quantity freeze
    • Base price
    • Price ranges of contracts
    • Order entry on the trading system
  • Margins for trading in futures
  • Charges

SESSION 12: Clearing and settlement

  • Clearing
    • Clearing mechanism
    • Clearing banks
    • Depository participants
  • Settlement
    • Settlement mechanism
    • Settlement methods
    • Entities involved in physical settlement
  • Risk management

SESSION 13: Margining

  • SPAN
  • Initial margin
  • Computation of initial margin
  • Implementation aspects of margining and risk management
  • Effect of violation

SESSION 14: Regulatory framework

  • Rules governing commodity derivatives exchanges
  • Rules governing intermediaries
  • Trading
  • Clearing
  • Rules governing investor grievances, arbitration
    • Procedure for arbitration
    • Hearings and arbitral award

SESSION 15: Implications of sales tax of Commodity trade

SESSION 16: Getting Started in Forex

  • Understand Spreads, Swaps, Pips & Lots
  • Understanding Types of Orders
  • Profitable Forex Trading Strategies
  • How to Perform Fundamental Analysis
  • Trading Psychology & Risk Management Strategies
  • Lots, Long and Short
  • Bid - Ask Spread
  • Pending Orders

SESSION 17: Leverage, Margin & Risk Control

  • Leverage and Margin
  • Stop Losses
  • Hedging

SESSION 18: Technical Analysis Strategies for FOREX

  • How to Trade Forex Using Support & Resistance
  • How to Trade Forex Using Fibonacci & Fibonacci Extensions
  • How to Trade Forex Using Exponential Moving Averages
  • How to Trade Forex Using Bollinger Bands
  • How to Trade Forex Using Elliott Waves
  • How to Trade Forex Using Pivot Points

SESSION 19: Profitable Chart Patterns For Forex Trading

  • How to Trade Cup and Handle
  • How to Trade Head & Shoulders
  • How to Trade Double Tops & Bottoms
  • How to Trade Rounding Tops & Bottoms
  • How to Trade Wedges & Triangles
  • How to Trade Flags & Pennants

SESSION 20: How To Trade Currency And Commodity Correlations

  • Corporate Executives in marketing, production and non-finance functions
  • Sales Executives
  • Client Servicing Executives
  • Account Managers
  • Customer Support Executives and Call Centre Executives of financial products in banks and other financial intermediaries.
  • Direct Sales Associates operating in the financial services industry Investors
  • 12 Hours

    Rs. 15,000

    For further details regarding contents,
    E-mail: training@bseindia.com