NISM Series XVI - Commodity Derivatives Exam Notes

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  • Speculation is a practice of engaging in trading to make quick profits from fluctuations in prices. It includes buying, selling (short selling) of securities, commodities or any financial asset.
  • Long speculators are those who buy first and expect the price to increase from current level.
  • Short speculators are those who sell first and expect the price to decrease from current level.
  • Call Option Seller Receives premium and has the Obligation to have Sell / Short position in the commodity futures
  • Put Option Seller Receives premium and has the Obligation to have buy / long position in the commodity futures
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NISM Commodity Derivatives

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