Mock Viva Ppt

8/6/2019 Mock Viva Ppt

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Research methodology


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OBJECTIVE OFTHE PROJECT

The basic idea behind undertaking currency and commodityderivatives project is to gain knowledge about the currency andcommodity future market.

To study the basic concept of currency and commodity futures.

To study hedging, speculation and arbitrage in currency andcommodity futures.

To understand the current scenario of the market and the growth/decline of the derivatives in the market.

To know various usage of currency futures and commodityfutures.


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RESEARCHDESIGN

A research design is the arrangement of condition for collection and

analysis of data.Actually it is the blue print of the research project. The

research design is Descriptive research.

DATACOLLECTION

Secondary data collection.

Websites

Journals

Newspapers


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COMPANYPROFILE


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INTRODUCTIONTO

CURRENCYDERIVATIVES


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INTRODUCTIONTO

COMMODITYDERIVATIVES


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COMPARISIONBETWEEN

CURRENCYANDCOMMODITY


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FINDINGS (CURRENCY)

Cost of carry model and Interest rate parity model are usefultools to find out standard future price and also useful for

comparing standard with actual future price. And its also a very

help full inArbitraging.

New concept of Exchange traded currency future trading is

regulated by higher authority and regulatory. The whole function

of Exchange traded currency future is regulated by SEBI/RBI,

and they established rules and regulation so there is very safe

trading is emerged and counter party risk is minimized incurrency Future trading.And also time reduced in Clearing and

Settlement process up to T+1 days basis.


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Larger exporter and importer has continued to deal in the

OTC counter even exchange traded currency future is

available in markets because, There is a limit of USD 100

million on open interest applicable to trading member who

are banks.And the USD 25 million limit for other trading

members so larger exporter and importer might continue to

deal in the OTC market where there is no limit on hedges.

In India RBI and SEBI has restricted other currency

derivatives except Currency future, at this time if anyperson wants to use other instrument of currency

derivatives in this case he has to use OTC.


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SUGGESTIONS (CURRENCY)

Currency Future need to change some restriction it imposed such as

cut off limit of 5 million USD, Ban on NRIs and FIIs and Mutual

Funds from Participating.

In OTC there is no limit for trader to buy or short Currency futures so

there demand arises that in Exchange traded currency future should

have increase limit for Trading Members and also at client level, in

result OTC users will divert to Exchange traded currency Futures.

In India the regulatory of Financial and Securities market (SEBI) has

Ban on otherCurrency Derivatives except Currency Futures, so this

restriction seem unreasonable to exporters and importers.And

according to Indian financial growth now its become necessary to

introducing other currency derivatives in Exchange traded currency

derivative segment.


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FINDINGS (COMMODITY)

Lately, the scenario has played like a see-saw in commodity market.

Dollar continued with its recover y and continued to put pressure on

commodities.

Bulls in the commodity sector are eying agricultural produce to hold

the best performers next year.

Cotton prices have finally stabilized, as earlier concerns were building

up that such a rise in prices will impact the demand for consumerclothing.


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Wheat supply is under the radar as bad weather is expected to keep

the produce on the lower side, which could eventually result in

elevated prices of sheer necessities .Traders should be positioned long on the wheat futures, as some

analysts strongly believe that wheat price rise is almost certain this

time around.

Preachers of gold and silver or the long run bulls on these

commodities are looking at other investment hideouts .

Small investors are being warned to get out of the overstretchedexuberance to chase precious commodities or else they could yet

again become vulnerable to a sharp selloff in these commodities.


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SUGGESTIONS (COMMODITY)

Learn from previous mistakes.

A little risk is necessary.

Serious planning and professional approach is required.

dealing with risk should be given highest priority

stay with blue chip names.


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CONCLUSIONS (CURRENCY)

For diversification of portfolio beyond shares, fixed deposits and mutual

funds, commodity trading offers a good option for long-term investors and

arbitrageurs and speculators.And, now, with daily global volumes in

commodity trading touching three times that of equities, trading in

commodities cannot be ignored by Indian investors.

The national multi-commodity exchanges have united proposed to the

government that in view of the growth of the commodities market, foreign

institutional investors should be given the go-ahead to invest in commodity

futures in India.

Commodity trading in India is poised for a big take-off in India on the back

of factors like global economic recovery and increasing demand from China

for commodities. Therefore, it won't be long before the market sees the

emergence of a completely redefined set of retail investors.

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