The MEX is pleased to announce its educational courses. The programmes have been reviewed and developed to expand both the variety and depth of topics covered. The Exchange has also increased the frequency of courses to enable more flexibility of choice when deciding which course to attend.
The courses provide an in-depth understanding of the workings of the Exchange and how its contracts can protect and add value to your business. They are designed to give a perspective of the role of the Exchange and provide attendees with a solid understanding of market processes, pricing, hedging and settlement.
The courses are aimed at all those involved in any aspect of the commodities that require an understanding of the pricing of their products and how to minimize the effects of volatile prices on their business.
The courses consist of classroom-style teaching by MEX executive staff and professional practitioners in the markets and include hedging with futures workshops.
MEX has tied up with National College, Centre for Development studies (Affiliated to Kathmandu University) for the conduct and certification of training. A Training Management Committee (TMC) is jointly formed to conduct, manage and certification of training.
Objective of the Training Program
On completion of this course, the learner will be able to acquire a basic understanding of:
- Commodity Markets
- Stock market.
- Derivatives
- Commodity Exchanges
- Pricing of Futures
- Basic Principles related to Trading
- Fundamental approach to Price Analysis of Commodities
- Technical approach to Price Analysis of Commodities
- Trading Strategies
- Functioning and regulation of Exchanges
- Process flow of a transaction on the Exchange
- Underlying markets in Commodities
Training program:
Training Management committee (TMC) is authorized body to announce various training programs. Initially TMC is facilitating for the following segment of training programs: (1) Basic Derivative Training (2) Advance derivative Training.
Basic derivative Training
This course shall be conducted for one week (Max. 6 working days). This training program shall be conducted 4 times in a year.
Costs and number of participants: Number of participants shall not exceed 40 in batch of training of class room module. Cost of training, materials and examination shall be decided by training management committee (TMC), jointly formed by MEX and National College.
Module of Training and Examination:
Training shall be conducted on classroom mode and e-training as well. Number of participants shall be fixed for classroom mode, but TMC has right to decide module and number of participation on training. Training materials shall be provided to all such of participants equally. Examination shall be conducted on online basis.
Derivative Training (Advance)
This course shall be conducted for two weeks (Max. 13 working days). This training program shall be conducted 2 times in a year.
Costs and number of participants: Number of participants shall not exceed 40 in batch of training in class room module. Cost of training, materials and examination shall be decided by training management committee (TMC), jointly formed by MEX and National College. Course content shall be available later on for this program.
Module of Training and Examination:
Training shall be conducted on classroom mode and e-training as well. Number of participants shall be fixed for classroom mode, but TMC has right to decide module and number of participation on training. Training materials shall be provided to all such of participants equally. Examination shall be conducted on online basis.
Course contents are as follows:
| Basic Derivative Training (1 week, 6 days) |
| Course Content |
Time |
Brief History of Futures Exchange.
Exchange Traded Products
Financial & Commodities |
1 hour 30 minutes |
Futures
Attributes
Risks & Applications
Market Pressures - Why futures prices change |
2 hours 15 minutes
1hour 1st session
15 minutes break.
1 hour 2nd session. |
Contract for Difference (CFD)
Introduction
Types
Pricing and underlying asset.
Futures Contracts
A. securitization.
b. Margin
c. Settlement |
2 hours 30 minutes
1 hour 1st session.
15 minute Break.
1 hour 15 minute 2nd session. |
Trading Practice
Introduction and use of automated trading system.
Margin trading & Use of leverage
Continuous quotation market
Order-driven systems
Orders types and execution.
Basis, spread and pricing of futures.
Futures Traders. |
2 hours 45 minutes.
1st session 1 hour 15 minutes.
2nd session 1 hour 15 minutes.
15 minutes break. |
Introduction of Stock market
Stock trading in Nepalese context.
Brief Introduction of equity derivatives, pricing and trading.
Types and Role of Members
Clearing Member
Non-Clearing Member
Market Maker. |
2 hours 15 minutes.
1st session 1 hour.
2nd session 1 hour.
15 minutes break. |
Segregation of funds.
Purpose and aspect of fund segregation.
The Clearing House
Role and responsibility of clearing house.
Clearing and settlement, Introduction and world's best practices. |
2 hours 15 minutes.
1st session 1 hour.
2nd session 1 hour.
15 minutes break. |
Practical:
Know-how of Automated trading system.
Demo trading Practices. |
3 Hours. |
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