What are the Challenges Faced by Small & Medium Traders in Existing Forward Trades and how Exchange traded forwards by NCDEX gives a perfect effective solution.

1. EXCHANGE TRADED FORWARDS
SMALL AND MEDIUM TRADERS

2. Challenges Faced by Small & Medium Traders
in Existing Forward Trades
2
Suboptimal
use of
resources,
thin
margins
Counter party
risk
Limited
market size
Quality
inconsistency
Insufficient
storage
facilities and
delivery
hassles

3. Counter-party default risks
Loss of business opportunities - Increased operational costs
3
Effective
Solution
Trading with
known entities
Limited business
opportunities & growth
Access to
regulated trading platform,
Compensation in case of default

4. Limited market
Restricted business opportunities
4
Access to pan-India buyers and
opportunity to diversify
business in various commodities
Additional
investment on
marketing
infrastructure
Increased
marketing and
operational
costs
Effective
Solution
Taking help of
intermediaries

5. Quality inconsistency
Sub-optimal prices
5
Option of quality assaying,
ease in reaching out to
desired trader and fair price
Limited reach
Trading with
known entities or
seeking buyers
willing to pay
premium
Increased
operational
hassles and
costs
Enhance
efforts for
quality
certification
Effective
Solution

6. Quality inconsistency
Sub-optimal prices
6
Pledge finance,
seamless
integration with
institutional
financing
Flexibility
in delivery,
multiple
options of
delivery
Access to
scientific
storage
services
Effective
Solution
Utilizing
services of
intermediaries
Increased
operational
hassles and cost
?

7. Exchange Traded Forwards –
ONE STOP SOLUTION to accelerate efficiency and growth
7
Trading on
regulated
platform
Compensation
guarantee to
the extent of
margin
collected
Online
Trading –
Access to
pan-India
market
Option of
Assaying –
Assured
quality
Time-bound
delivery-
settlement
schedule
Multiple
delivery
modes,
flexibility in
delivery
Takes care
of operational
difficulty
Takes care
of timely
settlement/
payment
Takes care
of Fair Price
For higher quality
Takes care
of access to
Wider market
Takes care
of default
compensation
Takes care
of counterparty
risk

8. Thank You
For information on Exchange Traded Forwards Contact at
Toll free no.: 1800 210 2339
E-mail: askus@ncdex.com
website: www.ncdex.com