Inventure commodities Presentation


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Inventure commodities Presentation

  1. 1. Trade In Commodity Derivatives With <br /> Inventure Commodities Ltd.,<br />
  2. 2. Experience the New World<br />Through<br />INVENTURE COMMODITIES LIMITED<br />
  3. 3. What is commodity Exchange?<br />A Commodities exchangeis 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.<br />
  4. 4. What is a future Trading<br />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.<br />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. <br />
  5. 5. CONT……<br />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).<br />
  6. 6. The History of Commodity Exchanges<br /><ul><li>The world's oldest established futures exchange, the Chicago Board of Trade, was</li></ul> founded in 1848 by 82 Chicago merchants. The first "to arrive" contracts were flour<br /> timothy hay "Forward "arrive flour, seed and hay. Forward contracts on corn were<br /> introduced in 1851.<br /><ul><li>The Chicago Mercantile Exchange, was founded as the Chicago Butter and </li></ul> Egg Board in 1898.<br /><ul><li> Most of the exchanges in the developing World were established in the 1980s and</li></ul> 1990s in response to government liberalization of commodity markets.<br /><ul><li> In the 21st century, online commodity trading has become increasingly popular,</li></ul> and commodity brokers offer front-end interfaces to trade these electronic-based<br /> markets.<br />
  7. 7. largest commodity exchange in the world<br />Source: As per the data compiled from the respective exchange website<br />
  8. 8. Details…<br />
  9. 9. Introduction of Commodity Market in India<br />
  10. 10. Indian Commodity Markets<br /><ul><li>Commodity Markets have their presence in country for over 120 yrs.
  11. 11. Trade in commodities has been Unorganized in Regional markets & Local Mandis.
  12. 12. Trading in Futures Contracts has been permitted in over 120 commodities.
  13. 13. Physical commodity market size in India is estimated to be around 25 lacs crore per annum.
  14. 14. Major commodities traded in India are - Gold, Silver, Crude Oil, Copper, Guar, Chana, Spices, among the few.</li></li></ul><li>11<br />Evolution of Commodity markets in India<br />Ban in forward trading from mid-sixties <br />Prior to ban<br />Thriving commodity exchanges for cotton, gold, edible oils etc.<br />more than 20 regional commodity specific exchanges<br />Recent developments<br />Ban completely lifted in 2003<br />Emergence of national level de-mutualised online multi-commodity exchanges<br />3 National and 21 regional exchanges<br />Trade in 60 commodities compared with just 8 in 2000<br />Growth exceeds 7-8 times in FY09 over FY10<br />
  15. 15. Futures & Spot Market in India<br />Futures<br /><ul><li>MCX (Multi Commodity Exchange)
  16. 16. NCDEX (National Commodity & Derivative Exchange) &
  17. 17. NMCE (National Multi-commodity Exchange)
  18. 18. ICEX ( Indian Commodity Exchange)</li></ul>Spot<br /> NSEL(SPOT)<br />NCDEX Spot Exchange Ltd. (NSPOT)<br />
  19. 19. Regional Exchanges<br />
  20. 20. Structure of Indian Commodity <br />Futures Exchanges<br />FMC (Forward Markets Commission)<br />Commodity Exchanges<br />National exchanges<br />Regionalexchanges<br />20 Other Regional Exchanges<br />NMCE<br />NCDEX<br />ICX<br />MCX<br />NBOT<br />
  21. 21. Commodities Trade On Exchanges<br />COPPER<br />CRUDE OIL<br />GOLD<br />Energy<br />Bullions<br />Metals<br />ZINC<br />NATURAL GAS<br />SILVER<br />LEAD<br />NICKEL<br />
  22. 22. Cont…..<br />Jeera<br />Grains<br />Pulses<br />Spices<br />Pepper<br />Wheat<br />Chana<br />Maize<br />Turmeric<br />Barley<br />Dhaniya<br />Also Trade in - Sugar, Vegetables Soya bean<br />
  23. 23. Relationship between Clients and Government<br />FMC (Forward Markets Commission)<br />Commodity Exchanges<br />MCX/NCDEX<br />Brokers ( Inventure Commodities Ltd.)<br />Clients<br />Huge No of Investor<br />
  24. 24. Process for trading (non-physical)<br /><ul><li>Open Trading account
  25. 25. Deposit money for meeting margin requirements. Margins are usually:
  26. 26. Mark to market payments
  27. 27. Take a position in the commodity
  28. 28. Liquidate the position by squaring up. </li></li></ul><li>Process for trading<br />Open Trading Account<br />Documents<br />Pan card also can use for identity proof too<br />Address Proof <br />Bank Proof <br />
  29. 29. Process for trading<br />Deposit money for meeting margin requirements. Margins are usually:<br />Daily margins<br />Mark to market payments<br />
  30. 30. Offline Trading<br />
  31. 31. Online Trading<br />The increasingly popular activity of buying and selling Commodities/securities over the internet, or to a lesser extent, through a our proprietary software.<br />
  32. 32. Demo of Trading<br />
  33. 33. Basis of Trading<br />If gold CMP is Rs.23000, Then10 present of lot value .i.e. 23000. <br />Should Purchase 100Gm Gold<br />
  34. 34. Marketing Timing<br />
  35. 35. Inventure Commodities Ltd.,<br /><ul><li>Promoted by Inventure Group
  36. 36. Member of NCDEX,MCX & NMCE.
  37. 37. Offers trading in a wide range of commodities. </li></li></ul><li>Support for business development<br />RMS: We have expert RMS team to monitor your client’s trades.<br />Dealing: will provide you support for dealing.<br />Research: Daily we are sending out 12-15 research calls with accuracy of around 70%.<br />Call Example- <br />Range Trading>> Buy Gold@ 20612-20622 with S/L 20590<br />for the Target 20660 then 20670,<br /> S/l-Stop loss<br />
  38. 38. Currency Training<br />Will provide you training for clearing currency certification at office every Saturday in collaboration with exchange.<br />Pricing will be as per F&O segment.<br />
  39. 39. Created ID<br />To be in touch with the prospect and existing business holder<br />For any query regarding Commodity & Currency..<br />C&,<br />For chatting <br />, <br />Where all can come to share their view for develop<br />the business. <br />
  40. 40. Start Trading<br />Double up your Revenue with same cost and infrastructure<br />
  41. 41. .<br />Lets DO it !!!!<br />To take advantage of This asset class.<br />
  42. 42. Thank You!!<br />SudhakarRai<br />In charge – Commodities/Currency.<br />Tel (Off): 91 22 39548500, EXT-579.<br />Mobile   : 09987215190,<br /><br />
  43. 43. Join Us!<br />Website: Email:<br /> C&, <br />Regd. Office : <br />201, Viraj Tower, Near Landmark constructing, W.E. Highway, Andheri(E),Mumbai- 400069.<br />Telephone : 91-22-39548500Fax : 91-22-40751535<br />Corporate Office : <br />201, Viraj Tower, Near Landmark constructing, W.E. Highway, Andheri (E),Mumbai- 400069.<br />Telephone : 91-22-39548500,Fax : 91-22-40751535<br />Member : <br />NSE, BSE, MCX, NCDEX,<br />NMCE<br />Depository Participant:<br />CDSL<br />