DGCX holds investor seminars on derivatives trade

The event was held in the view to enhance awareness about the modalities of commodities trade among investors in general and the products being traded on the exchange in particular.

Conducted by Vivek Mahajan, Head, Training Department, DGCX and attended by a large number of current and potential investors interested in derivatives market, the seminars reflected the progress DGCX has made within less than two years since its inception in terms of investor enthusiasm. DGCX is confident that future commodity derivatives offered them another avenue for alternative investment.

Colin Griffith, Chairman, DGCX, said that the seminars were organized in view of the growing demand for more educative opportunities for investors to learn about the modalities of the trade. 'As we introduce newer products on the exchange and the trade volumes increase, it is important that potential investors are provided the opportunity to learn more about the market and how to trade on it. The two seminars bore out the fact that investors are increasingly drawn to derivatives trade as a lucrative investment alternative,' he added.

The seminars, held by the exchange's training department, sought to familiarize investors the intricacies of electronic commodities derivatives markets. As part of the program, participants were also handed informative reference material that will guide them later in trading and settlement operations. Participants received meticulous briefing on all aspects of commodities and currencies futures, including portfolio diversification and its role in risk management, potential risks and rewards of trading commodities and the opportunities and risks involved in currency trade.

'The enthusiasm and eagerness demonstrated by the participants reveals how important derivatives trade is to contemporary economies. Commodity derivatives can be used as alternative investment instruments and can help reduce portfolio risks through diversification. DGCX fully appreciates the need to further educate investors, producers, consumers, merchants and users of commodities into the benefits of effectively using a commodity derivatives exchange.' Colin Griffith explained.