Trading Markets

1. Spot Market
   Spot Trades done for three hours in the day as floor trading and are settled on the third day from the date of transaction. The settlement is done on T+2 day i.e. trade done on Monday will be settled on Wednesday. The Seller has to deliver the offer note and Buyer has to make payment before the closure of the banking hours on the third working day. On receipt of payment from the Buyer, Clearing House/Agency will release and endorse the Reservation Note in favor of the Buyer. All the trades are settled individually on trade-for-trade basis.
   
   
2. Weekly Market
   Trades for weekly settlements are done during the prescribed hours in the day are settled on the sixth day from the date of transaction. The settlement is done on T+5 rolling day i.e. trade done on Sunday will be settled on next Sunday. The Seller has to deliver the Reservation Note/Offer Note and Buyer has to make payment before the closure of the banking hours on the fifth working day. On receipt of payment from the Buyer, Clearing House/ Clearing Agency will release endorse the Reservation Note,in favor of the Buyer. All the trades are settled individually on trade-for-trade basis. The transactions are not netted for the purpose of settlement.
   
   
3. Forward Markets
   A Forward contract is an agreement entered between two parties to buy or sell an asset at a future date for an agreed price. A Forward contract is not traded on an exchange.
   Forward contracts are exactly known as OTC contracts which generally used by clearing houses for hedging and arbitrage purpose. Exchange has managerial role only for that.
   
   
4. Futures Market
   The Futures Market is primarily intended for Hedging and Speculation. Contracts in Futures Market results mostly in Cash Settlement and do not frequently result in delivery. The Clearing House guarantees trades executed on the exchange. Contracts that are not closed out and are due for delivery will be delivered and settled through the warehouse receipts. COMEN is having 4 delivery month in Agro Products and 6 delivery months in Bullions contracts as separate contracts for each commodity being traded at COMEN. All contracts are settled on daily basis at the daily settlement price till the final delivery of commodity on the expiry date.
   
   Futures market consists of various book types wherein orders are segregated as Regular lot orders, Special Term orders, and Negotiated Trade Entries and Stop Loss orders depending on their order attributes. All orders have to be of regular lot size or multiples thereof.
   

Options

Currently COMEN is not introducing option trade in commodities. We are on the phase to build professional approach of investment behavior. When COMEN will be satisfied to its volume, demand for this segment of market with volume and professional approach to understand this market by brokers then we are planning to launch this segment of market for trade.