Aggregation refers to the state of ownership/control over all futures positions on behalf of a group. It involves the consolidation of futures positions by a person or enti...
Alloys, as we know, are metals formed by blending two or more metallic elements in order to achieve enhanced strength and durability. These can be found in various forms, su...
A warehouse, sanctioned by the exchange, serves as a safe haven for physical commodities and facilitates the actual delivery of said commodities. This allows for a streamline...
It's a risk-free profit-generating strategy.
Arbitrage, a concept in finance, involves buying and selling the same commodity in two different markets to exploit price discr...
Arbitration is a method of conflict resolution that involves a neutral third party, known as an arbitrator, who listens to the arguments of both parties and makes a decision...
Let's discuss some fundamental concepts in the world of finance - base metals. These are commonly found materials like aluminum, copper, tin, nickel, and lead, which are know...
Precious metal bars, commonly known for their standardized sizes, are physical representations of valuable commodities. These bars, made of gold, silver, and other precious ...
Transportation expenses refer to the costs associated with the movement of goods from one location to another. These expenses encompass a variety of charges such as warehous...
These exchanges help in price discovery and hedging against price risks.
Commodity Exchange refers to a marketplace for trading standardized commodities through futures and ...
The commodities included in the index can range from agricultural products to energy resources.
A Commodity Index is a vital tool in the world of finance, used to track the ...
The pool is managed by a professional trader or a commodity pool operator, who makes investment decisions on behalf of the investors. Investors are required to contribute a c...
As we delve into the world of finance, one term that often comes up is "cost and freight." This refers to the expenses incurred in getting goods to their designated port. ...
In financial terms, the Crop Year refers to the duration between two consecutive harvests. It is an important concept to understand in the realm of agriculture and commodity...
It is an important aspect in the world of financial derivatives and is commonly used by traders and investors.
In the realm of financial derivatives, the term Devolvement re...
This is typically done through the use of cash settlements.
In the world of finance, we often come across the term "differential." It refers to the level of modification al...
This allows traders to offset their futures positions by taking or making delivery of the underlying asset. EFPs are commonly used in the commodities market and can be benefi...
This is an important concept to understand in the world of finance and trading. It is essential for investors to keep track of FNDs as they approach, as it can affect their p...
The term Full Carrying Charge Market, also known as Full Carry, is a concept used in the futures market. It refers to the inclusion of all costs associated with storing, ins...
This metric is commonly used in the energy and agricultural industries to measure the profitability of production and processing operations.
Gross processing margin, or GPM...
Think of invisible supply as the hidden stock of a commodity that is not yet accounted for in the market. It is the supply that has not been measured, separated, or stored i...
This market is a physical or virtual marketplace where goods are bought and sold for immediate delivery at current market prices.
A key term in the world of finance is the ...
It is issued by the warehouse operator on behalf of the owner of the goods, and serves as proof of ownership and a negotiable instrument in financial transactions.
A Wareh...
Exchange members are assigned a unique code that contains information about their clients. This code provides comprehensive details about the clients, allowing members to ha...
is known as the trade date. This date is important in the financial world as it determines when the transaction will be settled and when the funds will be exchanged.
Unders...
A member pool account, or Demat account, is a crucial tool utilized by Trading Members and Clearing Members in commodity exchanges. Its primary purpose is to ease the pay-in...
A knowledgeable professor in finance would define the term "ask price" as the lowest price at which a dealer is willing to sell a commodity. This is an important concept to ...
Located in Ahmedabad, the Online Commodity Exchange India Ltd. is a renowned national multi-commodity exchange. It provides a platform for traders to buy and sell various com...
(NNP) is a measure of a country's economic performance that takes into account both the total value of goods and services produced within a nation's borders and the income ea...
Welcome to the National Multi Commodity Exchange, India's pioneering De-Mutualised Electronic Multi-Commodity Exchange located in Ahmedabad. This exchange was granted the Na...
Welcome to our class on finance related terms. Today, we will be discussing NCDEXRAIN, a rainfall index used by the National Commodity and Derivatives Exchange. This index m...
Welcome to the National Commodity and Derivative Exchange of India, an online platform for commodity trading in India. This exchange is promoted by some of the leading finan...
The National Board of Trade, or NBOT, is a multi-commodity exchange situated in Indore, India. It serves as a platform for buying and selling various goods, including agricu...
Limited, or MAFCO, is a co-operative society that deals with the marketing of cotton.
Welcome to our lesson on MAFCO, the Maharashtra State Co-operative Cotton Growers Mark...
in the world trading market
In the world of finance, ISIN is a crucial term that refers to the Commodity Identification Number. This unique code is used to represent each c...
The Indian Farmers Fertiliser Cooperative Limited, commonly known as IFFCO, is a leading cooperative society in India that specializes in providing quality fertilizers to fa...
The Indian Council of Agricultural Research (ICAR) is a premier organization that focuses on the development and implementation of innovative agricultural techniques in Indi...
(GNP) is a measure of a country's economic output, including the value of goods and services produced by its citizens, both domestically and abroad. It is an important indica...
Freightex, a prominent index on NCDEX, serves as a benchmark for the freight rates per tonne on heavily trafficked routes spanning 1000 kilometers. This index provides a com...
The Forward Market Commission serves as the governing body for commodity futures trading in India. It works to ensure fair and transparent price discovery in the market, whi...
(FCI) is a government-owned corporation responsible for procurement, storage, and distribution of food grains across India.
The Food Corporation of India, or FCI, is a gove...
(FAO) is a specialized agency of the United Nations that leads international efforts to defeat hunger.
The Food and Agriculture Organisation (FAO) is a specialized agency of...
A clearing member's declaration to deliver a predetermined amount of a commodity to fulfill a short futures contract is known as a delivery notice. This notice serves as a c...
The delivery date, also known as maturity date or expiration date, refers to the specific day in a month when commodities, in accordance with a futures contract, must be phy...
This is an important concept in finance, as it can provide insight into the supply and demand dynamics of a particular commodity. Spreads can be either positive or negative, ...
In order for the client to deposit commodities, they must complete the Commodity Deposit Form (CDF) and submit it to the warehouse. The form should be accompanied by an assa...
Commodity prices are determined by the forces of supply and demand, which can fluctuate throughout the day. The closing price is the final value of a commodity at the end of...
It
In the world of finance, close out price refers to the final value at which the delivery of commodities is resolved for a short sale. This pivotal aspect of trading often...
(CIF) is a trade term used in international commerce where the seller is responsible for organizing and paying for transportation of goods to the buyer's chosen port of desti...
is a government-run agency that deals with the trade of cotton and other agricultural commodities.
The Cotton Corporation of India, a governmental body, specializes in the t...
is called futures trading.
Futures trading refers to the practice of purchasing commodities at a predetermined price with the intention of receiving delivery on a future dat...
The Bureau of Indian Standards, also known as BIS, is a national organization that sets and maintains quality standards in various industries in India. It was established in...
Understanding the Bid-Ask spread is crucial in the world of finance. It refers to the difference between the price at which a dealer is willing to buy and sell a commodity. ...
is known as the bid price, while the lowest price at which a dealer is willing to sell commodities is known as the ask price. These prices are essential in understanding the ...
A beneficiary account, much like a bank account, is a Demat account that can be held by an individual or a corporate entity. It can also be held jointly by multiple parties,...
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In the realm of finance, there exists a unique form of trading known as "Indian trading". This method involves setting floor and ceiling prices on the first day of the con...
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In the world of finance, the concept of futures market can be quite complex. A key aspect to understand is how prices of commodities are affected in this market. When a co...
An assayer, be it an individual or an institution, plays a crucial role in the financial market. They possess the authority to certify and grade the commodities exchanged in...
The Agricultural Gross Domestic Product is a key economic indicator that measures the total value of all goods and services produced within a country's agricultural sector. ...
