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Equities and Commodities

Presented by:
Md. Shahejan Vindhani
Md. Tariq
Md. Sufiyan Mukadam
Munzirr Hussein
Nabeel Shaikh
Naveed Khan

Basic Good which is


Interchangeable.
Commonly traded commodities
are Gold, Crude Oil, Sugar, Rice,
etc.
The Exchange standardize the
quantity minimum quality
required for trading.

Common Commodity Derivatives


Crude Oil
Agriculture
Metals and Steel
Precious Metals
Plastic
Natural Gas

COMMODITY EXCHANGES
MAJOR COMMODITY EXCHANGES IN INDIA
24 commodity exchanges in India.
3 Major Commodity Exchanges:
National Commodity and Derivative Exchange Limited (NCDEX) (MUMBAI)
Mumbai Multi Commodity Exchange of India Limited (MCX) (MUMBAI)
National Multi Commodity Exchange of India Limited(NMCE)(AHMEDABAD)

MAJOR COMMODITY EXCHANGES


Exchange Name

Commodities Traded

Chicago Mercantile Exchange (CME)

Butter, Milk, Feeder Cattle, Frozen Pork Bellies, live cattle

Intercontinental Exchange (ICE)

Crude oil, electricity, natural gas

Kansas City Board of Trade (KCBT)

Wheat, natural gas

Minneapolis Grain Exchange (MGE)

Corn, soybeans, wheat

New York Mercantile Exchange (NYMEX)

Aluminum, copper, crude oil, electricity, gasoline, gold, heating oil,


natural gas, platinum, propane, silver

London Metal Exchange (LME)

Aluminum, Copper, Tin, Nickel, Zinc and Lead

Trading of Commodities
Traded in form of Derivatives
Derivatives:

Forward Contracts
Future Contracts
Swaps
Exchange Traded Commodities
Over the Counter Commodity Derivatives

Relationship between Equities, Currencies,


Commodities and Bond Markets

Currency: +ve

Commodities: -ve

Bond Prices: +ve

Stocks: +ve

Currency: -ve

Commodities: +ve

Bond Prices: -ve

Stocks: -ve

Equity Products
Equity Products:
Spot Contracts
Derivatives:

Futures Contracts
Options Contracts
Over The Counter Contracts
Swaps

Why Commodities over Equity?


More Liquidity
Diversification
More Trading Time
Globally Traded

THANK-YOU

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