NEED FOR THE STUDY
The Study on Commodities Trading Investment and Speculation MBA Marketing Projects is undertaken to analyze the trading Practices with special reference to commodity as tool of risk Management techniques.
• To study the concepts of commodities Trading in India.
• To study of The Various Trends In Commodity Trading
• To Study The Role of Commodities In Indian Financial Markets
• To study In detail The Role of Futures And Forwards.
• To analyze the present situation of the commodities in Indian market and suggest for any improvements thereafter.
To achieve the object of studying the commodities market in stock market data have
been collected. Research methodology carried for this study is purely from Secondary data from various web sites mentioned below.
LIMITATIONS OF THE STUDY
The study is limited to “Commodity Trading – Investment and Speculation” in the Indian context.
1 The study cannot say as totally perfect as it is subjected to any alteration .
2. The study is not based on the international perspective of
commodity markets. It is limited to national level only.
• The trading in commodity derivatives started on Dec. – 2003.
• Within a short span of 3 years the trading volume in commodity derivatives increased in a rapid manner, now it going to equalize with the financial derivatives trading volumes.
• First derivatives emerged as hedging products in commodities.
• These commodities are the risk management instruments which transfers the pricing risks to other parties.
• Internationally, commodity derivatives are exchange – traded.
• In the bullish market, the investors can earn profits by buying the commodity futures.
• In the bearish market, the investors can earn profits by selling the commodity futures.
• The hedgers can transfer their risks to other parties by ways of long hedge and short hedge.
• The speculators can build large positions with little margins by way of leverage and their profit/loss potential is unlimited.
• The arbitragers can also earn risk less profits by ways of cash –and-carry arbitrage and reverse cash-in-carry arbitrage.
• These commodity products are very much new to India.
• The SEBI is taking necessary actions to create awareness into the investors.
• The commodities are very complex financial instruments. Hence the investor should take at most care while trading.
• In India, the commodities only have commodity futures, and the options in commodities should be introduced.
• The SEBI and the Stock Exchanges should take more actions (investor’s awareness programmers) to create awareness and knowledge in between the investors.
• All the persons and intermediaries associated with the commodity derivative markets must fulfill the minimum education (NCFM).
• By using the trading strategies (long hedge and short hedge) the producers can transfers the pricing risk.
• The agree commodity producers can get better prices for their production in the market by way of efficient price discovery with the help of future prices.
• By using these commodity futures the farmers can benefit by way of short-selling.
• By using commodity futures inventory risk will be minimized.
Download Final Year MBA Finance Project Case Study on Commodities Trading Investment and Speculation for MBA Marketing Projects.