Futures and commodity trading

Futures and commodity trading

Bachelor of Business Studies (BBS) — Fourth Year

Subject: Fundamentals of Investment (FIN 253)

Unit 11: Derivative Securities

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of futures and commodity trading.
• Apply the relevant financial concepts or calculations and explain their assumptions, risks and analytical limits.

Curriculum Scope

• The future market: market structure, trading in future market
• Trading commodities: speculating and spreading
• Financial futures: the financial futures market, trading techniques

Detailed Microsyllabus

1. Futures markets

   1. Market structure and contract obligations.
   2. Trading and settlement concepts.
   3. Difference from an option right.

2. Strategies

   1. Commodity speculation and spreading.
   2. Financial futures.
   3. Analyze supplied trading techniques and risks.

---

Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 89–91.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here. Examples involving current laws, rates, institutional products or Nepalese status must identify the relevant period and official materials; no changing numerical or legal requirements are invented here.