Commodity
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Top
[ + ] AGDP
Agricultural Gross Domestic Product.
[ + ] AGMARK
Agricultural Marking.
[ + ] Arbitrage
Simultaneous buying and selling of the same asset
in different markets in order to capitalize on variations in price between those
markets .
[ + ] Ask price
Lowest price at which a dealer is willing to sell
a commodity.
[ + ] Assayer
Assayer is an authorized entity (person/institution)
that certifies and grades the commodities that are delivered in exchange accredited
warehouses.
Top
[ + ] Backwardation
In futures market, when a commodity is in shortage,
causing near month contract to sell at a premium and distant month contract to sell
at a discount i.e. spot price of the commodity is higher than the forward price.
[ + ] Bandhani
An Indian form of trading in which the contract
price is not allowed to go beyond floor and ceiling prices, set on the first day,
throughout the life of the contract, thus restricting excessive volatility.
[ + ] Basis:
Basis is price difference between a cash contract and
a futures contract.
[ + ] Beneficiary Account
A beneficiary account is a Demat account
in the name of an Individual (single or jointly). Such an account could also be
in the name of a Corporate, a partnership firm, a society and a trust. It is similar
to a bank account. This account is to be used for transacting in commodity balances
held by the account holder at Exchange accredited warehouses. These commodity balances
would have been – in a physical process set up – represented through a warehouse
receipt.
Top
[ + ] Cash commodity
The actual physical product on which a futures
contract is based. This product can include agricultural commodities, financial
instruments and the cash equivalents of index futures.
[ + ] Close out price
Close out price is the rate at which settlement
of short delivery of commodities is completed.
[ + ] Closing Price
The price at the end of the day’s trading on a
commodity market.
[ + ] Commodity
A physical substance, such as food, grains, and metals,
which is interchangeable with other products of the same type.
[ + ] Commodity Deposit Form (CDF)
: The client has to fill up the
Commodity Deposit Form (CDF) and submit the same to the warehouse along with the
assayer’s report after which the assayer gives a report of the quality of the commodities
.The Commodity Deposit Form is available with the warehouse.
[ + ] Commodity exchange:
A commodity exchange is an association,
or a company or any other body corporate organizing futures trading in commodities.
[ + ] Commodity spreads (or straddles)
Commodity spreads measure
the price difference between two different contracts, usually futures contracts.
[ + ] Contango
Market scenario when the forward price of a commodity
is higher than the spot price.
[ + ] Convergence
The tendency of difference between spot and futures
contract to decline continuously, so as to become zero on the date of maturity.
[ + ] CCI
Cotton Corporation of India
[ + ] CIF
Cost, Insurance & Freight
Top
[ + ] Delivery
The tender and receipt of the actual commodity or
in the case of agricultural commodities, warehouse receipts covering such commodity,
in settlement of a futures contract. Some contracts settle in cash (cash delivery),
in which case open positions are marked to market on the last day of the contract
based on the cash market close.
[ + ] Delivery date
The day in the month that commodities
on a futures contract have to be delivered.
[ + ] Delivery month
Specified month within which delivery may
be made under the terms of a futures contract.
[ + ] Delivery notice
A notice of a clearing member’s intention
to deliver a stated quantity of a commodity in settlement of a short futures position.
Top
[ + ] F.A.O
Food and Agriculture Organisation
[ + ] FCI
Food Corporation of India
[ + ] FMC
Forward Market Commission is the Regulatory Authority
in India for commodity futures trading.
[ + ] Forward price
The fixed price at which a specified amount
of a commodity is to be delivered on a fixed date in the future.
[ + ] FREIGHTEX
Freightex is an index on NCDEX that represents
simple average of the freight rates per tonne across high-density routes for a distance
of 1000 kilometers.
[ + ] FUTEXAGRI
Futexagri is an equal- weighted index of commodities
traded on NCDEX based on the price of near month future contracts.
[ + ] FUTEXAGRI
An agreement to buy or sell a fixed quantity
of a specified commodity , for delivery at a fixed date in the
future at a fixed price. Futures contracts are standardised agreements traded
on Futures Exchanges.
Top
[ + ] GDP
Gross Domestic Product
[ + ] GNP
Gross National Product
Top
[ + ] ICAR
INDIAN COUNCIL OF AGRICULTURAL RESEARCH.
[ + ] IFFCO
Indian Farmers Fertiliser Cooperative Limited.
[ + ] ISIN:
ISIN is the Commodity Identification Number by which
each commodity along with its specific details is uniquely represented.
Top
[ + ] MCX
Multi Commodity Exchange of India is a de-mutualised
online commodity exchange of India promoted by Financial Technologies (I) Ltd, SBI,
Fidelity International, NSE, NABARD, HDFC Bk, SBI Life Insurance Co., Union Bank
of India, Canara Bk, Bank of India, Bank of Baroda and Corporation Bank.
[ + ] MSCCGMF
Maharashtra State Co-operative Cotton Growers
Marketing Federation.
[ + ] MSP
Minimum Support Prices.
Top
[ + ] NABARD
National Bank for Agriculture and Rural Development.
[ + ] NAFED
National Agricultural Co-operative Marketing
Federation of India Limited.
[ + ] NBOT
National Board of Trade (NBOT) is a national multi-commodity
exchange located at Indore.
[ + ] NCDEX
National Commodity and Derivative Exchange of India
is a de-mutualised online commodity exchange of India promoted by NSE, ICICI Bk,
LIC, PNB, CRISIL, NABARD IFFCO and Canara Bk.
[ + ] NCDEXRAIN
NCDEXRAIN is a rainfall index of NCDEX which tell
us what percentage of cumulative normal expected rainfall (till the date of the
index) it has actually rained taking into consideration average actual rainfall
at both Colaba and Santa Cruz weather stations in Mumbai.
[ + ] NMCE
National Multi Commodity Exchange is the first De-Mutualised
Electronic Multi-Commodity Exchange of India located at Ahmedabad was granted the
National status on a permanent basis by the Government of India and operational
since 26th November 2002.
[ + ] NNP
Net National Product
Top
[ + ] Offer price
Lowest price at which a dealer is willing to
sell a commodity.
[ + ] OCEIL
Online Commodity Exchange India Ltd. is a national
multi-commodity exchange located at Ahmedabad.
[ + ] Open interest
The number of open or outstanding contracts
on a commodity exchange for which the holders are still obligated to the commodity
exchange concerned. No offsetting sale or purchase has yet been made against it.
Open interest is used as an indicator of the level of commercial activity in a particular
futures contract.
[ + ] Open position
A long or short trading position that is not
yet closed.
Top
[ + ] PDS
Public Distribution System.
[ + ] Pool Account
Member pool account is a Demat account opened
by Trading Members and / or Clearing Members of commodity exchanges. This account
is opened to facilitate the pay-in and payout process .
Top
[ + ] Rally
A considerable rise in the value of a commodity market
after a decline.
Top
[ + ] Short position
Position resulting from a short selling strategy.
[ + ] Short selling
A strategy in which a speculator sells a commodity
that he or she does not own in order to profit from a falling market. The
speculator will borrow the commodity from a third party and then immediately sell
on to the buyer .
[ + ] Speculator
A trader who takes an outright long or short position
in the market.
[ + ] Spot market
A market in which commodities are bought and
sold for cash and immediate delivery.
[ + ] Spread
The difference between current bid and offer ( ask ) prices
for a commodity.
[ + ] Settlement date
The date on which a contract must be fully
paid for and delivered.
[ + ] Settlement price
In futures markets, the price that is set
by the exchange at the end of each trading day and which is used by the clearing
house to market open positions and assess margin calls.
Top
[ + ] Trade date
The date on which a trade is executed for a specified
value date
Top
[ + ] Unique Client Code
This code is allotted to all members of
exchange that will tell you about all details of clients.
Top
[ + ] Warehouse receipt
A warehouse or depository receipt is issued
when delivery takes place on a commodity exchange. It specifies the grade and quantity
of commodities.