Commodities Market Module (Intermediate) Practice Exam
The Commodities Market Module (Intermediate) is a certification designed to provide participants with a deeper understanding of the commodities market, including its structure, trading processes, and regulations. It covers topics such as commodity derivatives, futures trading, pricing mechanisms, risk management strategies, and the role of commodity exchanges.
This certification is suitable for individuals seeking to expand their knowledge of the commodities market and gain a competitive advantage in trading, analysis, and financial services roles related to commodities. This exam helps to:
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Understand the distinction between commodity and financial derivatives.
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Learn how commodity futures are used in the market.
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Gain insight into the pricing mechanism of commodity futures.
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Explore the NCDEX trading platform along with its clearing and settlement processes.
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Understand the regulatory framework and taxation rules governing the commodities market.
Why is the Commodities Market Module (Intermediate) important?
- Enhances knowledge of the commodities market and commodity derivatives.
- Provides insights into the functioning of commodity exchanges and trading practices.
- Strengthens understanding of risk management tools and strategies in commodity trading.
- Covers regulatory aspects and compliance requirements in the commodities market.
- Equips professionals with the skills needed to analyze and manage commodity portfolios.
- Valuable for careers in commodity trading, risk management, and investment analysis.
Who should take the Commodities Market Module (Intermediate) Exam?
- Commodity Traders
- Risk Management Professionals
- Financial Analysts
- Investment Advisors
- Portfolio Managers
- Research Analysts
- Compliance Officers
- Market Risk Analysts
Skills Evaluated
Candidates taking the certification exam on the Commodities Market Module (Intermediate) is evaluated for the following skills:
- Understanding of commodity markets and their structure.
- Knowledge of trading in commodity derivatives, futures, and options.
- Proficiency in pricing mechanisms and analysis of commodity prices.
- Skills in risk management strategies related to commodity trading.
- Understanding of the role and operations of commodity exchanges.
- Familiarity with the regulatory framework and compliance requirements for commodity markets.
Exam Format
- Duration: 120 minutes
- No. of questions: 60
- Maximum marks: 100, Passing marks: 50 (60%); There is negative marking for incorrect answers.
- Certificate validity: For successful candidates, certificates are valid for 3 years from the test date.
Commodities Market Module (Intermediate) Certification Course Outline
The Commodities Market Module (Intermediate) Certification covers the following topics -
Module 1. Introduction to Derivatives
- Introduction to Derivatives; types, Products, participants and functions; Exchange–traded versus OTC derivatives.
Module 2. Application of Futures & Options
- Types of instruments (future, options)-Basics and Payoffs; Pricing commodity derivatives; Hedging, Speculation and Arbitrage
Module 3. Commodity Derivatives
- Difference between commodity and financial derivatives; Global and Indian commodities exchanges; Evolution of commodity market in India.
Module 4. NCDEX Platform
- Structure of NCDEX; Exchange membership; Capital requirements; Commodities traded on NCDEX platform; Instruments available for trading; Pricing of commodity futures; Trading; Clearing, Settlement and Risk Management; Use of commodity futures in hedging, speculation and arbitrage.
Module 5. Regulatory Framework & Taxation aspect
- Rules governing commodity derivatives exchanges; Intermediaries, Investor grievances and arbitration, Implications of sales tax