Commodities Market Module (Intermediate) Practice Exam

The Commodities Market Module (Intermediate) from NISM 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 those looking to enhance their knowledge of the commodities market and gain a competitive edge in trading, analysis, and financial services roles related to commodities.
Why is 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.

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