School of Stocks
Home

Commodities

Module Overview

Commodity markets developed much before equities, bonds, and currencies. These markets first developed as a place to buy and exchange agri-produce, metals and other useful commodities which were prevalent in the course of history. The development of commodity markets laid the foundation for all other markets and thus, it is very important to understand it in detail. Unlike equities, the ground realities of the commodity markets are vastly different and the factors which affect prices are more specific and less correlated to other commodity baskets. In this module, you will learn all about commodities, their fundamentals, demand & supply factors, different uses, production/extraction details, etc. The module will give you a comprehensive break-up of the various commodities available for trading in India and an insight into each one of them in separate chapters.

Chapters

1. Introduction to Commodity Derivatives

11 Lessons

It covers the history of commodity derivatives, basic understanding of the various types of instruments and their pricing models. It also gives an overview of the types of market participants.

2. Commodity Derivatives in India

5 Lessons

Learn about the history of commodity derivatives, global context of the market share, and the commodity market in India which is dominated by MCX.

3. Understanding Commodity Derivatives

16 Lessons

it helps understand the the trading concepts in the commodity futures market with examples. It also explains the fundamentals of options trading in commodities and how to use them to hedge/trade using multiple different situations.

4. Basis, Contango, and Backwardation

9 Lessons

Understanding these concepts will help in gauging the prevailing sentiment and direction of commodity markets.These comprehensive lessons give a thorough explanation to help in trading and hedging using derivatives.

5. Gold - Precious Metals

12 Lessons

Learn about the most important factors about gold & the precious metals market. Learn about the relevance of gold as a storage of wealth and it's relationship with the US dollar and points to remember when trading it.

6. Silver - Precious Metals

6 Lessons

Silver is both a precious metal and an industrial metal. In this module you can learn about it's demand & supply, relationship with gold and points to remember when trading it.

7. Copper - Base Metals

11 Lessons

Copper is one of the most widely used industrial metal and has an important bearing on various economic activities such as infrastructure, manufacturing and construction. Learn the facts required to trade in copper.

8. Aluminium - Base metals

7 Lessons

Learn about the demand & supply factors which determine aluminium market. Read about what to keep in mind when trading aluminium in the Indian commodity market.

9. Zinc - Base Metals

7 Lessons

Widely known for it's anti corrosive properties and it's use in alloys, Zinc is one of the most widely used commodities. Learn about the economics of Zinc and how to trade it.

10. Lead - Base Metals

7 Lessons

Learn about the lead usage, it's application in batteries and other industrial uses. Get to know the demand & supply from and industrial standpoint and how to trade lead after considering global factors.

11. Nickel - Base Metals

6 Lessons

This versatile commodity is mostly used in making alloys primarily; stainless steel. It is also being widely used in lithium-ion batteries. Learn the changing economics of Nickel in this chapter.

12. Crude oil - Energy

6 Lessons

Popularly known as "Black Gold", Crude Oil is considered the most important commodity in the world for many reasons. It has a large influence on almost all economies in the world and it is the cause of major political and international conflict. The price of crude oil can change the destiny of entire nations and thus, it is imperative to understand it more detail. In this chapter, you will learn about the various types of crude oil and the factors which affect the price of the commodity and the basics of how to trade it.

13. Natural Gas - Energy

3 Lessons

Natural Gas is one of the cleaner non-renewable sources of energy which is used mainly for heating, cooling, and industrial purposes to produce chemicals. It is a highly volatile commodity as it caters to the peak demand and seasonality has a very big role to play in its price.

14. Brass - Alloys

1 Lessons

One of the most commonly used alloy in ornaments, Brass is made up of Copper and Zinc. Learn about its basics in this chapter.

15. Technical & Intermarket Analysis

5 Lessons

Learn about correlation between commodities and currencies, bond yields and equities. Also, learn some basic charting patterns which are useful to trade commodities.

16. Exchange Timings and Holidays

3 Lessons

Learn about commodity market timings by segment and the the declared market holidays.

17. Commodity Contracts & Specifications

3 Lessons

Its important to understand the instruments as commodities have different specifications and are more diverse than equities in terms of trading units, base value and tick size.

18. Settlement of Commodity Contracts

3 Lessons

In this chapter learn about how commodity contracts are settled in cash/physically. Learn about the delivery logic, tender period and delivery period of each commodity.

19. Commodity Options

3 Lessons

Learn about the basics of commodity options and the liquidity in commodity options contracts.

20. Global Factors and Economic Reports

3 Lessons

Since commodities are traded all over the world, global factors and economic reports are indicative of future prices. Learn about the important factors to track when trading commodities.

21. Charting on MCX

2 Lessons

In this chapter, you will learn the importance of tracking international prices of commodities in USD terms along with the prices on MCX in INR. The aim is to provide a holistic view on the implications on charting and analysis.

Discussions