Commodities Trading is a short, university credit bearing course which aims to critically analyse the structure and features of key commodity markets, factors which influence the prices of commodities, inherent risks associated in different
Commodity trading involves the trade of essential primary products such as metals, grains, oil etc. and intangibles such as interest rates, stock market indices etc. Participation in the global commodity trading business is a key mechanism used by modern organisations to accept or avoid additional risks arising due to uncertain prices of key core commodities. Given the global interconnectivity between commodity markets and capital markets, finance professionals need a sound understanding of how these markets function and the determinants of price movements and risk factors within these markets.
This course aims to critically analyse the structure and features of key commodity markets, factors which influence the prices of commodities, inherent risks associated in different commodities and the role played by key regulators in ensuring end to abusive speculation within the commodity markets.
Learning outcomes
On successful completion of the course, you will be able to:
- Critically evaluate the functioning of different types of commodity markets and how derivatives are traded in these markets
- Specify factors which effect commodity price
- Critically appraise the mechanisms of delivery and settlement in commodity trading
- Critically evaluate the impact of key regulators and regulatory changes within the commodities market
Course content
You will cover the following topics:
- Skills for studying at masters level (including numeracy skills)
- Commodities as a new asset class and types of commodities
- Structure and features of metal, dry bulk trade and other major commodity markets
- Unique features of the energy and oil markets
- Commodity trading platform
- Risks associated in various commodity markets
- Factors which impact commodity prices
- Commodity derivatives
- Key regulators in the commodity markets
- Contemporary issues within the commodity market
- Regulatory changes
