ABans Group

Now-a-days futures trading in commodity market is a booming business in India. Following are the technical terms of commodity futures trade explained in simple language:

• Cash Commodity–It is the actual physical commodity as distinguished from the futures contract based on the physical commodity.
• Settlement of Cash–According to a procedure specified in the contract, it is where the seller pays the buyer the cash value of the commodity traded.
• Carry Forward Position–This is the situation in which client carries his open positions to the next day.
• Arbitrage – Here similar commodities are on simultaneous purchase or sale in different contracts or in different exchanges of the same commodity in one exchange.
• Clearing Member – A non clearing member should settle all the trades through a clearing member.
• Day Trader – It is within a single trading session, a speculator will normally initiate and offset a position.
• Default–As per the exchange rules, it is the failure to perform on a futures contract.
• Derivative–It is traded on or off the exchange and its price is directly dependent upon the value of one or more underlying securities, equity indices, debt instruments or any agreed upon arrangement.
• Hedging–Hedgers take advantage of adverse price changes in the market and protect their businesses.
• Long – It is one who owns a cash commodity or has bought futures contracts.
• Price Discovery–The price level of commodity is determined on the basis of supply and demand factors.
• Short – One who has sold cash commodity or futures contracts.
• Speculator–One who anticipates future price movements and tries to profit from buying, selling future contracts.
• Trade Account – It is an account with the broking organization to trade in the futures market.
• Volatility – A measurement of the change in price over a given period of time.
• Warehouse Receipt – The client receives a Warehouse Receipt when the commodity sold in the futures market is taken the warehouse.

Founded in 2005, ABans Group has grown from being a trading house to a dynamic and diversified business group. We provide expertise in Broking Services, Merchant Banking, Non-Banking Financial Dealings, Gold Refining and Realty and Infrastructure. In a nut shell Abans Group is a comprehensive Financial Services and Solution Provider, which aims to provide an end-to-end financial solution to all its clients.