|
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.
B
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.
Bid Price: The highest price
at which a dealer is willing to buy commodities .
Bid – Offer/Ask spread: The difference
between the price at which a dealer is willing to buy ( Bid ) and sell ( Offer/Ask
) a commodity . Bid will be lower of the two prices and offer
price the higher. Also known as impact cost.
BIS: Bureau of Indian Standards.
Bullion: The generic word for
gold and silver.
Buying forward: Buying commodities
at a specified price for delivery at a future date.
C
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
D
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.
F
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.
Futures contract: 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.
G
GDP - Gross Domestic
Product
GNP - Gross National
Product
I
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.
M
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.
N
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
O
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.
P
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 .
R
Rally: A considerable
rise in the value of a commodity market after a decline.
S
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.
T
Trade date: The date on which
a trade is executed for a specified value date
U
Unique Client Code: This code is
allotted to all members of exchange that will tell you about all details of clients.
W
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.
|