Procedure for Training

Types of Trading

1. Spot Contract is a contract of buying or selling a commodity, security or currency for settlement (payment and delivery) on the spot date, which is normally two business days after the trade date.

2. Futures Contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price.

3. An Option gives the buyer the right, but not the obligation to buy (or sell) a certain asset at a specific price at any time during the life of the contract.

4. A Derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, commodity, index or security