Certified Commodity Dealer

VS-1093

Certified Commodity Dealer
www.vskills.in


Certified Certified Certified Certified Commodity Dealer Commodity Dealer Commodity Dealer Commodity Dealer

Certificate Code VS Certificate Code VS Certificate Code VS Certificate Code VS- -- -10 10 10 1093 93 93 93
Vskills Certified Commodity Dealer is for beginners pursuing career in commodities
market. !e course focuses on imparting t!e necessary domain kno"ledge to ac#uaint t!e
candidate "it! t!e operations and functionalities of commodities and deri$ati$e market in
%ndia. Commodity markets !a$e a significant gro"t! potential "it! t!e ability to benefit
from rapid %ndian economic gro"t!& go$ernment initiati$es and "idening market
participation.
'!y s!ould one take t!is certification( '!y s!ould one take t!is certification( '!y s!ould one take t!is certification( '!y s!ould one take t!is certification(
!e certification pro$ides an understanding of commodity market and practical aspects of
commodities trading. !e certification gi$es a $isible recognition for your kno"ledge and is
also beneficial for "orking professionals and people looking for a ne" )ob or promotion or
simply more responsibility. !e certification "orks as an added #ualification on your CV
and significantly impro$es your c!ances of getting t!e desired role.

'!o "ill benefit from taking t!is cer '!o "ill benefit from taking t!is cer '!o "ill benefit from taking t!is cer '!o "ill benefit from taking t!is certification( tification( tification( tification(
!e certification is beneficial for traders& researc! analysts& dealers& in$estors& treasury
managers as "ell as students looking for"ard for a career in t!is sector.

est Details* est Details* est Details* est Details*
Duration* Duration* Duration* Duration* +0 minutes
,o. of #uestions* ,o. of #uestions* ,o. of #uestions* ,o. of #uestions* -0
.a/imum marks* .a/imum marks* .a/imum marks* .a/imum marks* -0& 0assing marks* 1- 2-0345
!ere is no negati$e marking in t!is module.
6ee Structure* 6ee Structure* 6ee Structure* 6ee Structure*
7s. 3&0008- 2%ncludes all ta/es4
Certified Commodity Dealer
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Companies t!at !ire Vskills Certified Companies t!at !ire Vskills Certified Companies t!at !ire Vskills Certified Companies t!at !ire Vskills Certified Commodity Dealer Commodity Dealer Commodity Dealer Commodity Dealer
Vskills Certified Commodity Dealer can look for"ard for re"arding career opportunities
"it! commodities e/c!anges& retail firms& banks& mutual funds& broking firms& 6.C9
companies etc. !e re#uired skills may $ary for eac! area but candidate must possess
sound fundamental kno"ledge& skills to analy:e and e/amine market and make necessary
reports toget!er "it! presentation skills.
Certified Commodity Dealer
www.vskills.in


able of Content able of Content able of Content able of Content
1. 1. 1. 1. %n %n %n %ntroduction to Commodity .arkets troduction to Commodity .arkets troduction to Commodity .arkets troduction to Commodity .arkets
1.1 Commodity ;/c!anges in %ndia
1.1 9lobal Commodity .arkets
1.3 <istory of Commodity Deri$ati$es in %ndia
1.= 0olicy %nitiati$es
1.- Structure of t!e %ndian Commodity .arket
1.+ 0arties of a Commodity ;/c!ange > rading
1.? @atest De$elopment
1.A Benefits of Commodity .arkets
1. 1. 1. 1. Commodity ;/c!ange .arkets Commodity ;/c!ange .arkets Commodity ;/c!ange .arkets Commodity ;/c!ange .arkets
1.1 !e 7ole of Commodity ;/c!anges
1.1 @ist of Commodity ;/c!anges in %ndia
1.3 ypes of Commodities raded in %ndia
1.= Ccti$e Commodities > Contracts on .CD
1.- Ccti$e Commodities > Contracts on t!e ,CD;D
3. 3. 3. 3. Segments in Commodity .arkets Segments in Commodity .arkets Segments in Commodity .arkets Segments in Commodity .arkets
3.1 EC .arkets
3.1 ;/c!ange raded Commodities
3.3 Spot .arkets
3.= Difference bet"een Spot Vs 6or"ard ransaction
3.- ;/c!ange traded VS EC
=. =. =. =. Deri$ati$es Deri$ati$es Deri$ati$es Deri$ati$es
=.1 0roducts
=.1 6unctions
=.3 Clearing and Settlement System
Certified Commodity Dealer
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=.= 0articipants
=.- ypes of Deri$ati$es .arkets
-. -. -. -. Comm Comm Comm Commodity and 6inancial Deri$ati$es odity and 6inancial Deri$ati$es odity and 6inancial Deri$ati$es odity and 6inancial Deri$ati$es
-.1 0!ysical settlement
-.1 Deli$ery > Cssignment
-.3 'are!ousing
-.= 6or"ard Contracts
-.- %ntroduction to 6utures
-.+ 0ricing Commodity 6utures
-.? Fsing Commodity 6utures
+. +. +. +. <edging <edging <edging <edging and Speculation and Speculation and Speculation and Speculation
+.1 .et!ods of <edging
+.1 S!ort <edge
+.3 @ong <edge
+.= <edge 7atio
+.- Cd$antages and Disad$antages of <edging
+.+ Speculation* Bullis! Commodity& Buy 6utures
+.? Cd$antages and Disad$antages of Speculation
?. ?. ?. ?. %ntroduction to Eptions %ntroduction to Eptions %ntroduction to Eptions %ntroduction to Eptions
?.1 Difference bet"een 6utures and Eptions
?.1 Eption erminology
?.3 ypes of .arket Cnalysis
A. A. A. A. rading rading rading rading
A.1 6utures rading System
A.1 ;ntities in t!e rading System
A.3 Commodity 6utures rading Cycle
A.= Erder ypes and rading 0arameters
A.- Erder ;ntry on t!e rading System
Certified Commodity Dealer
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A.+ .argins for rading in 6utures
A.? C!arges
A.A <edge @imits
9. 9. 9. 9. Clearing and Settlement Clearing and Settlement Clearing and Settlement Clearing and Settlement
9.1 Clearing
9.1 Settlement
9.1 'are!ousing
9.3 %ndicati$e 'are!ouse C!arges of ,CD;D
10. 10. 10. 10. 'are!ousing 'are!ousing 'are!ousing 'are!ousing
10.1 'are!ousing and commodity e/c!ange
10.1 Guality of assets and functions
10.3 7ole of an appro$ed 7egistrar > ransfer agent and Cssayer
10.= %ndicati$e "are!ouse c!arges
1 11 11 11 1. . . . 7 77 7isk .anagement > .argining isk .anagement > .argining isk .anagement > .argining isk .anagement > .argining
11.1 Calculating %nitial .argin
1 11 11 11 1. . . . ;lectronic Spot ;/c!ange ;lectronic Spot ;/c!ange ;lectronic Spot ;/c!ange ;lectronic Spot ;/c!ange
11.1 ,eed for electronic Spot e/c!ange
11.1 ,CD;D Spot ;/c!ange @td 2,S0E4
11.3 ,ational Spot ;/c!ange @td 2,S;@4
11.= Constitution
11.- rading
11.+ .embers!ip
11.? Cd$antages
1 11 13 33 3. . . . 7egulatory 6rame"ork 7egulatory 6rame"ork 7egulatory 6rame"ork 7egulatory 6rame"ork
13.1 7ules 9o$erning commodity deri$ati$es e/c!anges 8 participants
13.1 7ules 9o$erning rading > Clearing on t!e ;/c!ange
13.3 7ules 9o$erning %n$estor 9rie$ances& Crbitration
13.= %mplications of VC
Certified Commodity Dealer
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Course Eutline Course Eutline Course Eutline Course Eutline

1. %ntroduction to Commodity .arkets 1. %ntroduction to Commodity .arkets 1. %ntroduction to Commodity .arkets 1. %ntroduction to Commodity .arkets
1.1 ;/plains t!e role of commodity e/c!anges in %ndia
1.1 Discusses t!e global commodity markets across t!e "orld and t!eir emergence
1.3 Discusses t!e e$olution of commodity markets in B7%C ,ations
1.= Discusses t!e !istory of commodity deri$ati$es in %ndia
1.- Discusses t!e $arious policy initiati$es regulating for"ard contracts in commodities all
o$er %ndia
1.+ Describes t!e structure of t!e %ndian commodity market and t!eir roles respecti$ely
1.? Describes t!e role of $arious players in t!e commodity e/c!ange > trading system
1.A Discusses t!e future prospects& gro"t! and latest de$elopment in t!e commodity
e/c!ange market in %ndia
1.9 ;/plains t!e benefits of commodity markets in %ndia
1. Commodity ;/c!ange 1. Commodity ;/c!ange 1. Commodity ;/c!ange 1. Commodity ;/c!ange
1.1 Discusses t!e role of commodity e/c!anges in %ndia facilitating trade
1.1 Describes t!e c!ief commodity e/c!anges in %ndia H ,CD;D& .CD& ,.C;%@& %C;D
1.3 Discusses $arious types of commodities traded in %ndia and t!eir categori:ation
1.= Discusses t!e acti$e commodities and contracts on .CD and ,CD;D
3. Segments in Commodity .arkets 3. Segments in Commodity .arkets 3. Segments in Commodity .arkets 3. Segments in Commodity .arkets
3.1 ;/plains t!e role of EC markets and t!eir functioning
3.1 Discusses t!e $arious e/c!ange traded commodities
3.3 Discusses t!e functioning of spot markets& difference bet"een spot > 6or"ard
transaction and e/c!ange traded and EC
=. Deri$ati$es =. Deri$ati$es =. Deri$ati$es =. Deri$ati$es
=.1 ;/plains t!e meaning of deri$ati$es and t!eir function
=.1 Discusses t!e $arious products and instruments categori:ed as deri$ati$es
Certified Commodity Dealer
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=.3 Discusses t!e functions and benefits of deri$ati$es
=.= Describes t!e role of t!e $arious participants trading in t!e deri$ati$es market
=.- Discusses t!e types of deri$ati$es markets - 6inancial and Commodity deri$ati$e
market
=.+ Difference bet"een commodity and financial deri$ati$es on t!e basis of p!ysical
settlement& deli$ery > assignment& "are!ousing etc.
-. Commodity Deri$ati$es -. Commodity Deri$ati$es -. Commodity Deri$ati$es -. Commodity Deri$ati$es
-.1 ;/plains t!e role and features of for"ard contracts
-.1 Discusses t!e limitation of for"ard market and contracts
-.3 ;/plain futures and standard features of future contracts
-.= ;/plains t!e differences bet"een future and for"ard contracts
-.- %llustrates t!e $arious terminologies used in future contracts
-.+ Discusses t!e difference bet"een in$estment assets and consumption assets
-.? Discusses t!e process of pricing commodity futures
-.A Discusses t!e process and features of pooling and bootstrapping
-.9 Discusses t!e Cost of Carry .odel
-.10 Discusses t!e process of pricing future contracts on in$estment and consumption
commodities
-.11 ;/plains t!e $arious met!ods of using commodity futures
+. <edgin +. <edgin +. <edgin +. <edging g g g & & & & Speculation Speculation Speculation Speculation and Crbitrage and Crbitrage and Crbitrage and Crbitrage
+.1 ;/plains t!e purpose& met!ods of !edging
+.1 ;/plains t!e meaning& purpose and benefits of s!ort !edge and long !edge
+.3 Discusses t!e mec!anism of !edge ratio
+.= Discusses t!e ad$antages and limitations of !edging
+.- Discusses ad$antages and disad$antages of !edging
+.+ ;/plains t!e meaning of speculation and optimal speculation strategies
+.? Discusses t!e ad$antages and disad$antages of speculation
+.A Discusses t!e concept of arbitrage and mec!anism to implement arbitrage t!eory
Certified Commodity Dealer
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?. Eptions ?. Eptions ?. Eptions ?. Eptions
?.1 Describes t!e concept of option and $arious option terminologies
?.1 Discusses t!e difference bet"een futures and options
?.3 Discusses t!e different approac!ed used to perform market analysis H ec!nical&
fundamental& #uantitati$e and sentimental analysis
A. rading A. rading A. rading A. rading
A.1 Discusses t!e functionalities of futures trading system
A.1 Discusses t!e $arious entities in$ol$ed in t!e trading system suc! as C.& 0C.&
SC.
A.3 Discusses t!e guidelines outlined for t!e allotment of client code
A.= ;/plains t!e commodity futures trading cycle
A.- Discusses t!e different order types and t!e re#uired conditions or trading parameters
to be fulfilled to enter trading system
A.+ ;/plains t!e meaning of eac! order entry on t!e trading system and t!eir functionalities
A.? ;/plains t!e process of placing order& maintaining order books and understanding net
position
A.A ;/plains t!e margins for trading in futures and t!e types of margins applicable to future
trading in commodities
A.9 Discusses t!e $arious c!arges in$ol$ed in trading t!roug! e/c!ange suc! as
transactional c!arges& collection& due date c!arges etc
A.10 ;/plains t!e !edging policy and t!e assignment of !edge limits and t!e prescribed
conditions
9. Clearing and Settlement 9. Clearing and Settlement 9. Clearing and Settlement 9. Clearing and Settlement
9.1 ;/plains t!e t!ree components in$ol$ed in commodities e/c!ange H rading& clearing
and settlement
9.1 ;/plains t!e process of clearing& role of clearing !ouses& mec!anism of clearing& need
of clearing banks and functions of depository participants
9.3 ;/plains t!e process of settlement& types of settlement& different types of settlement
price& settlement mec!anism and met!ods of settlement
Certified Commodity Dealer
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10. 'are!ousing 10. 'are!ousing 10. 'are!ousing 10. 'are!ousing
10.1 ;/plains t!e concept of "are!ousing in terms of commodity e/c!ange& applicable
guideline
10.1 Discusses t!e #uality of underlying assets and functions of a "are!ouse
10.3 ;/plains t!e role of an appro$ed 7egistrar > ransfer agent and appro$ed Cssayer
10.= Discusses t!e indicati$e "are!ouse c!arges of ,CD;D
11 11 11 11. 7 . 7 . 7 . 7isk .anagement > .argining isk .anagement > .argining isk .anagement > .argining isk .anagement > .argining
10.- ;/plains t!e mec!anism of managing risk in future market
10.+ Discusses t!e regulations and procedures for margins and limits applicable to
members and t!eir clients
10.? Discusses t!e computations of initial margins using S0C, system
10.A %llustrates t!e implementation aspect of margining and risk management
10.9 ;/plains t!e effect of $iolation
11 11 11 11. ;lectronic Spot ;/c!ange . ;lectronic Spot ;/c!ange . ;lectronic Spot ;/c!ange . ;lectronic Spot ;/c!ange
11.1 Discusses t!e need for electronic spot e/c!ange
11.1 Discusses t!e role and constitution of ,CD;D Spot ;/c!ange @td 2,S0E4
11.3 Discusses t!e role and constitution of ,ational Spot ;/c!ange @td 2,S;@4
11.= ;/plains t!e process of trading& functionalities of t!e trading platform and t!e
members!ips offered
11.- %llustrates t!e ad$antages of ;lectronic Spot ;/c!ange to farmers& traders& arbitrageurs
and future e/c!anges
13. 13. 13. 13. 7egulatory 6rame"ork 7egulatory 6rame"ork 7egulatory 6rame"ork 7egulatory 6rame"ork
13.1 Discusses t!e rules go$erning commodity deri$ati$es e/c!anges 8 participants
13.1 Discusses t!e rules go$erning trading > clearing on t!e e/c!ange
13.3 Discusses t!e rules go$erning in$estor grie$ances& arbitration
13.= Discusses t!e implication of VC suc! as settlement on account of VC& raising
in$oice

Certified Commodity Dealer
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Sample Guestions Sample Guestions Sample Guestions Sample Guestions

1. Cn appreciation of t!e 7upee relati$e 1. Cn appreciation of t!e 7upee relati$e 1. Cn appreciation of t!e 7upee relati$e 1. Cn appreciation of t!e 7upee relati$e to t!e FS Dollar "ould be e/pected to to t!e FS Dollar "ould be e/pected to to t!e FS Dollar "ould be e/pected to to t!e FS Dollar "ould be e/pected to
!a$e "!ic! of t!e follo"ing effects( !a$e "!ic! of t!e follo"ing effects( !a$e "!ic! of t!e follo"ing effects( !a$e "!ic! of t!e follo"ing effects(
C. %ncrease FS e/ports to %ndia
B. %ncrease FS imports from %ndia
C. 7aise t!e cost to Cmericans for %ndian imports
D. Create Balance of 0ayments surplus for %ndia
1. '!ic! of t!e s 1. '!ic! of t!e s 1. '!ic! of t!e s 1. '!ic! of t!e systems occurred first in t!e !istory of international ystems occurred first in t!e !istory of international ystems occurred first in t!e !istory of international ystems occurred first in t!e !istory of international b bb banking ( anking ( anking ( anking (
C. 0ost Bretton 'oods
B. ;uropean .onetary Fnion
C. 9old Standard
D. 9old ;/c!ange Standard
3. '!en Cmericans or foreigners e/pect t!e return on IIIII deposits to be !ig! 3. '!en Cmericans or foreigners e/pect t!e return on IIIII deposits to be !ig! 3. '!en Cmericans or foreigners e/pect t!e return on IIIII deposits to be !ig! 3. '!en Cmericans or foreigners e/pect t!e return on IIIII deposits to be !ig!
relati$e to t!e retu relati$e to t!e retu relati$e to t!e retu relati$e to t!e return on IIIII deposits& t!ere is a !ig!er demand for dollar rn on IIIII deposits& t!ere is a !ig!er demand for dollar rn on IIIII deposits& t!ere is a !ig!er demand for dollar rn on IIIII deposits& t!ere is a !ig!er demand for dollar
deposits deposits deposits deposits and a correspondingly lo"er demand for foreign deposits and a correspondingly lo"er demand for foreign deposits and a correspondingly lo"er demand for foreign deposits and a correspondingly lo"er demand for foreign deposits. .. .
C. dollar5 dollar
B. dollar5 foreign
C. foreign5 dollar
D. foreign5 foreign
=. %f t!e 6renc! demand for Cmerican e/ports rises at t! =. %f t!e 6renc! demand for Cmerican e/ports rises at t! =. %f t!e 6renc! demand for Cmerican e/ports rises at t! =. %f t!e 6renc! demand for Cmerican e/ports rises at t!e same time t!at F.S. e same time t!at F.S. e same time t!at F.S. e same time t!at F.S.
producti$ity rises relati$e to 6renc! producti$ity& t!en& in t!e long run& producti$ity rises relati$e to 6renc! producti$ity& t!en& in t!e long run& producti$ity rises relati$e to 6renc! producti$ity& t!en& in t!e long run& producti$ity rises relati$e to 6renc! producti$ity& t!en& in t!e long run&
C. t!e euro s!ould appreciate relati$e to t!e dollar
B. t!e dollar s!ould depreciate relati$e to t!e euro
C. t!e dollar s!ould appreciate relati$e to t!e euro
D. it is not clear "!et!er t!e euro s!ould appreciate or depreciate relati$e
to t!e dollar.
Certified Commodity Dealer
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-. %f portable disk players made in C!ina are imported into t!e Fnited States& t!e -. %f portable disk players made in C!ina are imported into t!e Fnited States& t!e -. %f portable disk players made in C!ina are imported into t!e Fnited States& t!e -. %f portable disk players made in C!ina are imported into t!e Fnited States& t!e
C!inese manufacturer is paid in C!inese manufacturer is paid in C!inese manufacturer is paid in C!inese manufacturer is paid in
C. Dollars
B. C!inese Juan
C. ;uros or some t!ird currency
D. %nternational monetary credits
Cns"er* 1 2C4& 1 2C4& 3 2B4& = 2C4& - 2B4 Cns"er* 1 2C4& 1 2C4& 3 2B4& = 2C4& - 2B4 Cns"er* 1 2C4& 1 2C4& 3 2B4& = 2C4& - 2B4 Cns"er* 1 2C4& 1 2C4& 3 2B4& = 2C4& - 2B4