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Intermediate

Understanding Commodity Futures and Hedging Mechanisms

MODULES
4
DURATION
~50 min
TRACK
Alternative Investing
Access Level
LEARNER
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Curriculum Breakdown

Commodity Markets in India — Structure and Players

3 Lessons
▶
What Are Commodity Derivatives and Why They Exist4 min
▶
India's Commodity Exchanges — MCX, NCDEX, and SEBI's Regulatory Role4 min
▶
Who Trades Commodities — Hedgers, Speculators, Arbitrageurs, and FPIs4 min

Futures Contract Mechanics

3 Lessons
▶
Contract Specifications — Lot Size, Tick Size, Expiry, and Settlement4 min
▶
Margins, Mark-to-Market, and the Clearing Corporation4 min
▶
Pricing Futures — Cost of Carry, Contango, and Backwardation4 min

Hedging with Commodity Futures

3 Lessons
▶
Why Producers and Consumers Hedge — Real Indian Examples5 min
▶
Long Hedge vs Short Hedge — Mechanics and Payoff4 min
▶
Basis Risk and Why Hedges Aren't Perfect4 min

Strategies, Risk, and Portfolio Role

3 Lessons
▶
Spreads — Calendar and Inter-Commodity Spreads4 min
▶
Speculation and Risk Management in Commodity Trading4 min
▶
Commodities in a Portfolio — Correlation, Taxation, and Access5 min