The physical market is simple market where the commodities are traded physically with the settlement limit of 11 days, or forward contracts for delivery of goods and payment of price after 11 days. These contracts are essentially party-to-party contracts and are fulfilled by the seller giving delivery of goods of a specified variety of a commodity as agreed to between the parties. Contracts for physical delivery are rarely allowed to be settled otherwise than by issuing deliveries. Such situations may arise when unforeseen and uncontrolled circumstances prevent the buyers and sellers from receiving or taking deliveries. The contracts may then be settled mutually in cash. On the other hand, futures markets trade in futures contracts which are primarily used for risk management on commodity shares with MCX commodity tips. Futures contracts are mostly offset before their maturity and, therefore, scarcely end in deliveries. Futures contracts are exchange-traded derivatives. Speculators and Hedgers use these futures contracts to benefit from the price variations and are hardly interested in either taking or receiving deliveries of goods. Commodity stock tips providers used future and options as a defensive mode for investing in the commodities. Major modes to trade in futures markets are. Futures: It an obligation to make or take delivery of a fixed quantity and quality of a commodity at a specific location. Options: A contract giving the right, but not the obligation, to buy or sell a futures contract at a specified price at or before some later date.
0 Comments
Index
An Index shows how a specified portfolio of share price is moving in order to give an indication of market trends. An index also helps to predict the equity and commodity calls. It is a basket of securities and the average price movement of the basket of securities indicates the index movement, whether upwards or downwards. Depository A depository is similar to a bank wherein the deposits are shares, debentures, bonds, government securities, units etc. in electronic form. Dematerialization It is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form and credited to the investor’s account with his Depository Participant (DP). An Exchange The Securities Contract Act defines ‘Stock Exchange’ as anybody of individuals, whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities. The stock exchange could be a regional stock exchange whose area of operation/jurisdiction is specified at the time of its recognition or national exchanges, which are permitted to have nationwide trading since inception. NSE was incorporated as a National Stock Exchange and permit research on intraday tips and other market researches. Debt instrument It represents a contract whereby one party lends money to another on predetermined terms with regards to rate and periodicity of interest, repayment of principal amount by the borrower to the lender. NSE is one of the first exchange in the country which is De-mutualized, where the management and the ownership of the Exchange are totally separate from the right to trade on it. Though the impetus for its establishment came from policymakers in the country, it has been set up as a public limited company. NSE has adopted the form of de-mutualized exchange from its very first day. It means, the ownership, trading, and management is in the hands of three different sets of people. NSE is not a singly owned exchange, it is owned by a group of leading financial organizations, banks, insurance firms and other financial intermediaries and is managed by experts, who do not participate in the trade on the Exchange, it also includes research firms who provide MCX free tips. This has totally solved the conflicts within the exchange and favored NSE in aggressively implementing policies and practices within a public interest. The model of NSE, in fact, accommodates involvement, support, and contribution of trading members in so many ways. Its Board comprises of more than 80 senior executives, eminent professionals in the fields of law, economics, accountancy, finance and marketing, taxation, stock future tips experts etc, nominees of SEBI and one full-time executive of the Exchange. NSE has made its own identity which is different from other exchanges in India where membership automatically implies ownership of the exchange. The ownership and management of NSE have been kept aside from the right of traders. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
May 2018
Categories |