Practice Drills: Hedging a Sample Commodity Position Using Futures

A hands-on drill course for experienced retail investors, HNIs, and business-owning investors who hold real commodity exposure and want to protect it. You will take three sample positions (physical gold held by a family, a fleet operator's diesel bill, and a trader's stored jeera) and hedge each one on MCX or NCDEX: map the exposure to a contract, size it in lots, estimate a minimum variance hedge ratio from price data, fund margins and daily mark-to-market through adverse moves, roll across expiries, measure basis at the exit, and compute the effective price the hedge actually locked in. The course closes with the tax treatment of hedge gains and losses in India and a complete hedge plan worksheet in Google Sheets.