Commodity Derivatives

Commodity derivatives are derived trading instruments of times’ market with underlying actual commodities being traded in actual physical form. These tools are meant for many productive and protective purposes. SBHPL carries a niche expertise in commodity derivatives trading and hence we simplify these instruments for our clientele and facilitate them is trading these instruments in a protective as well as productive manner:

• 1. Trading Platforms NCDEX and MCX
• 2. Hedge Strategy and hedging facilitation
• 3. Arbitrage analysis and facilitation
• 4. Price view based trading facilitation

Commodity derivatives trading is a leveraged trade mechanism hence through understanding of underlying commodity along with market impacting factors in correlation to win/lose aspect is a must before anyone start trading in this segment. SBHPL not only offers efficient trading platform, also handhold its client to understand the products and market well before as well as during their trading.

Brief of derivative instruments:

• A. Commodity Futures: Where commodity is being traded with a future date delivery obligation. Settled in cash or compulsory physical delivery on obligation/expiry date. Many agricultural as well as non-agricultural commodities are underlying of these future contracts.


• B. Commodity Options: These are derived trading instruments of respective Future Contracts as underlying, which are traded with rights and obligation features for a particular future delivery contract. Options convert into Future contract upon expiry or being settles in cash prior to that.