The NAV of Mutual fund (Oil-o1) Phase value 250 is RS 410 as of Today.
Position: Due to uncertainity in direction of crude markets because of various factors like depreciating rupee (+ve for price) , fallingof equity markets(-ve for crude price) and arrival and change of direction of hurricanes in US(+ve and -ve ) out of crude market fro sometime.Invested in equities today to take advantage of volatile conditions in the Indian Market .So the value increased by rs 40.
Present Postion :short on copper .(trying it on copper for the first time )
Friday, August 17, 2007
Thursday, August 16, 2007
NAV of Mutual Fund.....
The NAV of Mutual fund (Oil-o1) Phase value 250 is RS 375 as of Today.
Position: Presently out of market and in cash due to volatile Crude and Equity Markets.......
Position: Presently out of market and in cash due to volatile Crude and Equity Markets.......
Monday, August 13, 2007
NAV of Mutual Fund
The NAV of Mutual fund (Oil-o1) Phase value 250 is RS 395 as of Today.
Position :Long on OIL....
Position :Long on OIL....
Friday, August 10, 2007
NAV of Mutual Fund..........
The NAV of Mutual fund (Oil-o1) Phase value 250 is RS 470 as of Today
Position :Short on OIL......(2 lots )
Position :Short on OIL......(2 lots )
Thursday, August 9, 2007
"The Tea Auction adventure By Abrar "
The Tea Auction adventure
It is not very often that I get out of my bed as early as 6.30 in the morning. But this was going to be a special occasion. 31st of July was going to be my first stint with tea trading, thanks to the program arranged by the trade club coordinators. After the grand success of the trading game, the club had more surprises in store for us. Sunil and Alok, the coordinators, had given us a briefing on the previous day on how the whole auction process takes place.
We all set off to the tea board with Sunil and the Rajat duo taking charge of the proceedings. The auction was to begin at 8.30 sharp and we managed to be there on time. I was expecting it to be some sort of market place with people shouting at the top of their voices, something on the lines of Dalal Street. As we moved into the building, we were ushered into an auditorium which was filled with people, representing various firms, maintaining perfect decorum. That was the first big surprise to me.
The proceedings started sharp on 8.30am. There was the moderator who, on behalf of the brokers, was taking forward the auction process. He was speaking at a rate faster than any cricket commentator. But he still made complete sense to his target audience. Then there were strange signs and conversations going on among all members. I could not make much sense; but one thing was clear: the trading had started. People were busy making calls and chatting on their laptops. After observing for some more time, there was some clarity on the happenings. The trading was taking place simultaneously in other parts of India including Guwahati and Banglore. To summarise the proceedings, there was a broker, who had several lots of tea from various suppliers and he held an auction for which there were various bidders including the likes of HLL and TATA.
On a personal note, it was a one of its kind of experience. It gave an insight into how actual trading happens. If not for this initiative by the trade club, I would never had a chance to visit a tea-auction. Cheers to the Trade Club for organizing this eventful trip and looking forward for more such fun in the days to come.
Mohammad Abrar
MBA IB (07-09)
IIFT-Kolkata
It is not very often that I get out of my bed as early as 6.30 in the morning. But this was going to be a special occasion. 31st of July was going to be my first stint with tea trading, thanks to the program arranged by the trade club coordinators. After the grand success of the trading game, the club had more surprises in store for us. Sunil and Alok, the coordinators, had given us a briefing on the previous day on how the whole auction process takes place.
We all set off to the tea board with Sunil and the Rajat duo taking charge of the proceedings. The auction was to begin at 8.30 sharp and we managed to be there on time. I was expecting it to be some sort of market place with people shouting at the top of their voices, something on the lines of Dalal Street. As we moved into the building, we were ushered into an auditorium which was filled with people, representing various firms, maintaining perfect decorum. That was the first big surprise to me.
The proceedings started sharp on 8.30am. There was the moderator who, on behalf of the brokers, was taking forward the auction process. He was speaking at a rate faster than any cricket commentator. But he still made complete sense to his target audience. Then there were strange signs and conversations going on among all members. I could not make much sense; but one thing was clear: the trading had started. People were busy making calls and chatting on their laptops. After observing for some more time, there was some clarity on the happenings. The trading was taking place simultaneously in other parts of India including Guwahati and Banglore. To summarise the proceedings, there was a broker, who had several lots of tea from various suppliers and he held an auction for which there were various bidders including the likes of HLL and TATA.
On a personal note, it was a one of its kind of experience. It gave an insight into how actual trading happens. If not for this initiative by the trade club, I would never had a chance to visit a tea-auction. Cheers to the Trade Club for organizing this eventful trip and looking forward for more such fun in the days to come.
Mohammad Abrar
MBA IB (07-09)
IIFT-Kolkata
"Musings of Gaurav Dhanani on Tea Auction "
Visit to TEA AUCTION – IIFT TRADE CLUB MEMBERS ----31st July 2007
Early in the morning around 7 am we started our journey to the TEA BOARD AUCTION near Dalhousie from respected hostels. My first impression about the event was that it would be a boring one and as seen in the movies and heard by peers.
However it was just the opposite of the impression I had in mind.
As we reached the auditorium we were seated in the last 2 rows and were instructed not to make any kind of noise because it could hamper the auction process. Then the AUCTION process started. There were 3 people sitting in front who were conducting the auction process i.e. the auctioneers and on the other side of the desk were around 70 people, i.e. the BIDDERS who included the high profile tea sellers like TATA , Hindustan Unilever Limited, DUNCANS, GOKUL, PREMIER group, OMKARA, JAGGU, KESARIA group, BALA group, MKL group, TEWARI group. The interesting part of the auction was the behaviour of the bidders and the auctioneer.
The process
Tea is sold in lots with each lot being given a unique number and there was a price associated with each lot and details of the lots like the quantity and approximate price was already with the bidders. The bidders can take the whole of a lot or can divide among the bidders at the settlement price if required. Then the bidders have to take the physical delivery of the tea lots as per their bidding. Once the auctioneer banged the hammer on the table the lot was finalised and nothing was to be done regarding that lot any more.
PARTIES IN THE PROCESS
1-The AUCTIONEER, we had the privilege of seeing 2 of them, the 1st one for 7 minutes and the next one for around an hour. Certain characteristics of the same were: he was a very fast speaker with ears of precision. He was the one who was interacting with the bidders and writing down the orders as per the price settled of the lot and then banging the hammer on the table. The best part was that he was able to identify which company had bid at the instant second, as for a single company 2-3 representatives were present who were sitting in different parts of the auditorium and he was pushing the bidders to offer better price. And one thing that strikes out was that in such fast hue and cry he was able to make jokes..(It was outstanding).
2-The BIDDERS, who were around 60-70 present that day, were the real ones to make note of and be analysed. One feature which I noticed was that 3-4 people of an organisation were present but were not sitting together, actually in different parts of the auditorium. They had code words like a typical shriek and making different kinds of noises which were tough to crack. They had all the required information of the lots and accordingly they were bidding. They were also making notes of the party and the rate at which the lots were sold.
Overall it was a great experience and it was the first time I saw a live auction been held. We were there for around and hour in the auditorium during which around 300 lots were sold, obviously not all lots were sold, for some bidders were not interested. Staying in Kolkata for last 22 years, I haven’t got such an opportunity as this one which I have got after joining IIFT. After it we along with some of the seniors went to Victoria memorial and thereafter returned to respected hostels.
GAURAV DHANANI
MBA IB 2007-09
IIFT KOLKATA
Early in the morning around 7 am we started our journey to the TEA BOARD AUCTION near Dalhousie from respected hostels. My first impression about the event was that it would be a boring one and as seen in the movies and heard by peers.
However it was just the opposite of the impression I had in mind.
As we reached the auditorium we were seated in the last 2 rows and were instructed not to make any kind of noise because it could hamper the auction process. Then the AUCTION process started. There were 3 people sitting in front who were conducting the auction process i.e. the auctioneers and on the other side of the desk were around 70 people, i.e. the BIDDERS who included the high profile tea sellers like TATA , Hindustan Unilever Limited, DUNCANS, GOKUL, PREMIER group, OMKARA, JAGGU, KESARIA group, BALA group, MKL group, TEWARI group. The interesting part of the auction was the behaviour of the bidders and the auctioneer.
The process
Tea is sold in lots with each lot being given a unique number and there was a price associated with each lot and details of the lots like the quantity and approximate price was already with the bidders. The bidders can take the whole of a lot or can divide among the bidders at the settlement price if required. Then the bidders have to take the physical delivery of the tea lots as per their bidding. Once the auctioneer banged the hammer on the table the lot was finalised and nothing was to be done regarding that lot any more.
PARTIES IN THE PROCESS
1-The AUCTIONEER, we had the privilege of seeing 2 of them, the 1st one for 7 minutes and the next one for around an hour. Certain characteristics of the same were: he was a very fast speaker with ears of precision. He was the one who was interacting with the bidders and writing down the orders as per the price settled of the lot and then banging the hammer on the table. The best part was that he was able to identify which company had bid at the instant second, as for a single company 2-3 representatives were present who were sitting in different parts of the auditorium and he was pushing the bidders to offer better price. And one thing that strikes out was that in such fast hue and cry he was able to make jokes..(It was outstanding).
2-The BIDDERS, who were around 60-70 present that day, were the real ones to make note of and be analysed. One feature which I noticed was that 3-4 people of an organisation were present but were not sitting together, actually in different parts of the auditorium. They had code words like a typical shriek and making different kinds of noises which were tough to crack. They had all the required information of the lots and accordingly they were bidding. They were also making notes of the party and the rate at which the lots were sold.
Overall it was a great experience and it was the first time I saw a live auction been held. We were there for around and hour in the auditorium during which around 300 lots were sold, obviously not all lots were sold, for some bidders were not interested. Staying in Kolkata for last 22 years, I haven’t got such an opportunity as this one which I have got after joining IIFT. After it we along with some of the seniors went to Victoria memorial and thereafter returned to respected hostels.
GAURAV DHANANI
MBA IB 2007-09
IIFT KOLKATA
"Tea Auction--- My Experience"- By Neha Gupta
Visit to Tea Board on 31 July 07
When I first saw “Tea Auction”, organised by ‘BLASH’ in our schedule for one full day, I got really excited. With the learning involved was a day off from classes.The alarm set off at 6am. I woke up with much ado to be in time for the bus. With a lot of inquisitiveness, around 35 of us hopped onto the IIFT bus and headed towards the tea board.
We all assembled in the last two rows of the room and awaited the auction to begin. In came the auctioneers and started off at a pace, which was difficult for us to follow initially. Slowly, we started following the process. We witnessed a part of the auction of a seller who had over 1000 varieties of tea! The bidders represented big names such as Tata tea, Hindustan Lever Ltd. and some export oriented firms such as Gokul, Madhu Jayanti and others.
It was interesting to see how the auctioneer and the bidders were trying to get the best price. Such Tea auctions are held simultaneously in various cities across the country such as Guwahati, Siliguri, Bangalore etc.
Amidst all this commotion, I turned around to find a couple of us snoring silently. After about an hour, we left the place to have some tea along with scrumptious samosas to satisfy our hunger pangs. The enthused team then moved on to rock Victoria memorial. It was a great way to spend the last day of the month.
Here’s a brief account of the auctioning process -
The Tea board is a regulated body where buyers and sellers (brokers – intermediaries between the buyers and producers) meet to buy and sell tea. Auction starts at 9 am and goes on till 6 pm and is a thoroughly professional set up. One or two more persons accompany the auctioneer.
Samples are given to prospective buyers at least 3 weeks prior to the date of the auction. The buyers taste the samples and carry out their valuation. Tea is sold in predetermined lot sizes, which is the minimum quantity that has to be purchased. Sometimes, a lot is purchased by one buyer but is actually shared by two or more parties if the each one’s requirement is smaller than the lot size.
One question that kept lingering in my head was why do the buyers and sellers come to the tea board for their transactions inspite of having to pay a sum of money as membership fees. This was answered during my discussion with Mr. Partha Protim Bhattacharya, Vice President (Export), The North Western Cachar Tea Co. Ltd. The primary reasons –
· Why does the seller come here?
Producer is required under the law to sell a portion of his produce through the tea board (Regulated auctioning). Also, the seller obtains the advantage of accessing an organised group of buyers under one roof.
· Why brokers prefer to sell through the tea board?
o Open market – When the broker buys from the producer, he is obliged to pay him whether the final buyer pays him or not.
o Tea Board – In this regulated market, when the broker buys from the producer, he has to pay the producer only when the final buyer pays him. In case the final buyer defaults, the broker is not obliged to pay the producer.
· Why does the buyer come here?
Recognised sellers and access to a number of sellers under one roof at one time.
It was a very informative endeavour and has enriched our knowledge of the tea auctioning process greatly.
Neha Gupta
MBA-IB (07-09) batch
IIFT-Kolkata
When I first saw “Tea Auction”, organised by ‘BLASH’ in our schedule for one full day, I got really excited. With the learning involved was a day off from classes.The alarm set off at 6am. I woke up with much ado to be in time for the bus. With a lot of inquisitiveness, around 35 of us hopped onto the IIFT bus and headed towards the tea board.
We all assembled in the last two rows of the room and awaited the auction to begin. In came the auctioneers and started off at a pace, which was difficult for us to follow initially. Slowly, we started following the process. We witnessed a part of the auction of a seller who had over 1000 varieties of tea! The bidders represented big names such as Tata tea, Hindustan Lever Ltd. and some export oriented firms such as Gokul, Madhu Jayanti and others.
It was interesting to see how the auctioneer and the bidders were trying to get the best price. Such Tea auctions are held simultaneously in various cities across the country such as Guwahati, Siliguri, Bangalore etc.
Amidst all this commotion, I turned around to find a couple of us snoring silently. After about an hour, we left the place to have some tea along with scrumptious samosas to satisfy our hunger pangs. The enthused team then moved on to rock Victoria memorial. It was a great way to spend the last day of the month.
Here’s a brief account of the auctioning process -
The Tea board is a regulated body where buyers and sellers (brokers – intermediaries between the buyers and producers) meet to buy and sell tea. Auction starts at 9 am and goes on till 6 pm and is a thoroughly professional set up. One or two more persons accompany the auctioneer.
Samples are given to prospective buyers at least 3 weeks prior to the date of the auction. The buyers taste the samples and carry out their valuation. Tea is sold in predetermined lot sizes, which is the minimum quantity that has to be purchased. Sometimes, a lot is purchased by one buyer but is actually shared by two or more parties if the each one’s requirement is smaller than the lot size.
One question that kept lingering in my head was why do the buyers and sellers come to the tea board for their transactions inspite of having to pay a sum of money as membership fees. This was answered during my discussion with Mr. Partha Protim Bhattacharya, Vice President (Export), The North Western Cachar Tea Co. Ltd. The primary reasons –
· Why does the seller come here?
Producer is required under the law to sell a portion of his produce through the tea board (Regulated auctioning). Also, the seller obtains the advantage of accessing an organised group of buyers under one roof.
· Why brokers prefer to sell through the tea board?
o Open market – When the broker buys from the producer, he is obliged to pay him whether the final buyer pays him or not.
o Tea Board – In this regulated market, when the broker buys from the producer, he has to pay the producer only when the final buyer pays him. In case the final buyer defaults, the broker is not obliged to pay the producer.
· Why does the buyer come here?
Recognised sellers and access to a number of sellers under one roof at one time.
It was a very informative endeavour and has enriched our knowledge of the tea auctioning process greatly.
Neha Gupta
MBA-IB (07-09) batch
IIFT-Kolkata
NAV of Mutual Fund...............
The NAV of Mutual fund (Oil-o1) Phase value 250 is RS 415 as of Today
Position :Short on OIL......(2 lots )
Position :Short on OIL......(2 lots )
Wednesday, August 8, 2007
NAV of OIL Fund......
The NAV of Mutual fund (Oil-o1) Phase value 250 is RS 390 as of Today
Position :Short on OIL......
Tuesday, August 7, 2007
NAV of Mutual Fund
The NAV of Mutual fund (Oil-o1) Phase value 250 is RS 430 as of now.....
Position :Short on OIL..
Position :Short on OIL..
Launch Of Commodity Mutual Fund.......and Listing Gains
** For all the conversations that follow in this blog "I" refers to " BLASH CLUB"
Well Guys Yesterday(06-AUG-07) can be easily termed as the Red Letter Day in the History of BLASH Club as the BLASH club dream of launching a Mutual Fund finally came into place.
We can easily term this as a defining point ,cos when the FMC(Forward Market Commission) and the governmenet were mulling about ,if to allow Mutual funds and FII's into this commodities market we started our own Mutual fud.May be we can provide some inputs to FMC by the starting of NExt year.
I would like to thank all the Junior Batch Students ,who showed eager and enthusiasm to contribute to this mutual fund inspite of warnings by us that you should be willing to forgo all the money that you have given us (if they wanted extra ordinary results !!!)and even Our Strong statement "Weak Hearts get out of the system " didnot prevent them from contributing to this as people are more interested in leanrning through practical exposure.(I personally feel the best way to learn is to put in your money loose them and learn a lot.OFcourse some might disagree with it)
Well My Basic Aim of starting this Mutual fund was Last year on one day when i was watching CNBC there was news coverage about "SPJAIN students forming their own Mutual fund in Equity and earning some 30-40 % gains by the end of the year" THey invested around 30-40k and got some 40 % returns on those(Not sure of the exact figures) .It is then i decided that we should do something which gives more returns than SPJAIN fund and also in an unexplored territory,that prompted me to make elaborate plans to invest in this Mutual fund.Hope by next January we and our college will be in Headlines for all the Right Reasons.......
Regarding the fund :
Well the total investment of the fund is around Rs 25000.Minimum contribution required for this was Rs 250 andif you are a strong hearted person then mulitples of 250.I collected around 11k from around 24-25 odd ppl ( some ppl contributing 1000 rs)and the rest of 14k was pumped in from My pocket.To make this fund more interactive and provide more practical exposure to the students ,we modified the functioning of this fund to include various typical equity market transactions like IPO Listing gains,Follow on Public Issue,Preferential Shares and selling and buying in Secondary Market,Dividiends in the form of Cash or Some Trips to Aqautica/INOX or Some social service.
To make all the above functions work each and every stduent were given one unit of physical shares/units through which they can do secondary market transactions like buying and selling of those to poor souls who could not particiapte in the Initial offer.A picture of how the share looks is as follows.......
well during collection of funds my aim was to give them a listing gains of around 40 %(gain of Rs 100 on Rs 250)., though beofre the start of the meet of launchign this fund the returns were only Rs 70 on 250 but by the end of the 1 hr meet i found that the fund value is increased by 11o rs more than my expectation. Largely beacuse of with some assistance from SRI LORD Venkateshawara and the global rout of equities market affecting the "CRUDE OIl", which fell by around $3 on one day .LONG Live CRUDE OIL!!!!!!!!
Daily the NAV of the fund will be posted here in the afternoons around 1-2 pm and ppl can purchase or sell based on these prices.............
Hope this Mutual fund will acheive its dream of being relecasted in CNBC by the starting of next year.........Long live CRUDE OIL(This fund was basically designed to invest only in crude ,crude and crude oil))
Happy BLASH ING (Buy Low And Sell High )Guys
Well Guys Yesterday(06-AUG-07) can be easily termed as the Red Letter Day in the History of BLASH Club as the BLASH club dream of launching a Mutual Fund finally came into place.
We can easily term this as a defining point ,cos when the FMC(Forward Market Commission) and the governmenet were mulling about ,if to allow Mutual funds and FII's into this commodities market we started our own Mutual fud.May be we can provide some inputs to FMC by the starting of NExt year.
I would like to thank all the Junior Batch Students ,who showed eager and enthusiasm to contribute to this mutual fund inspite of warnings by us that you should be willing to forgo all the money that you have given us (if they wanted extra ordinary results !!!)and even Our Strong statement "Weak Hearts get out of the system " didnot prevent them from contributing to this as people are more interested in leanrning through practical exposure.(I personally feel the best way to learn is to put in your money loose them and learn a lot.OFcourse some might disagree with it)
Well My Basic Aim of starting this Mutual fund was Last year on one day when i was watching CNBC there was news coverage about "SPJAIN students forming their own Mutual fund in Equity and earning some 30-40 % gains by the end of the year" THey invested around 30-40k and got some 40 % returns on those(Not sure of the exact figures) .It is then i decided that we should do something which gives more returns than SPJAIN fund and also in an unexplored territory,that prompted me to make elaborate plans to invest in this Mutual fund.Hope by next January we and our college will be in Headlines for all the Right Reasons.......
Regarding the fund :
Well the total investment of the fund is around Rs 25000.Minimum contribution required for this was Rs 250 andif you are a strong hearted person then mulitples of 250.I collected around 11k from around 24-25 odd ppl ( some ppl contributing 1000 rs)and the rest of 14k was pumped in from My pocket.To make this fund more interactive and provide more practical exposure to the students ,we modified the functioning of this fund to include various typical equity market transactions like IPO Listing gains,Follow on Public Issue,Preferential Shares and selling and buying in Secondary Market,Dividiends in the form of Cash or Some Trips to Aqautica/INOX or Some social service.
To make all the above functions work each and every stduent were given one unit of physical shares/units through which they can do secondary market transactions like buying and selling of those to poor souls who could not particiapte in the Initial offer.A picture of how the share looks is as follows.......
well during collection of funds my aim was to give them a listing gains of around 40 %(gain of Rs 100 on Rs 250)., though beofre the start of the meet of launchign this fund the returns were only Rs 70 on 250 but by the end of the 1 hr meet i found that the fund value is increased by 11o rs more than my expectation. Largely beacuse of with some assistance from SRI LORD Venkateshawara and the global rout of equities market affecting the "CRUDE OIl", which fell by around $3 on one day .LONG Live CRUDE OIL!!!!!!!!
Daily the NAV of the fund will be posted here in the afternoons around 1-2 pm and ppl can purchase or sell based on these prices.............
Hope this Mutual fund will acheive its dream of being relecasted in CNBC by the starting of next year.........Long live CRUDE OIL(This fund was basically designed to invest only in crude ,crude and crude oil))
Happy BLASH ING (Buy Low And Sell High )Guys
Tuesday, July 31, 2007
Commodity Trade Game Experience.......By Gaurav Agarwal
It was 12:30 PM Saturday afternoon. Some of us from new batch who joined Trade Club of IIFT were waiting anxiously for the club coordinators to come and know what exactly this club is all about?
Then Sunil and Alok (club coordinators) entered the class along with Pankaj and Srinivas. We all started listening to them as they told us that they will be starting up with a small game which will give us a glimpse of TRADE. They explained the game to us, it was virtual commodity trading game in which we had to trade virtually in some of the commodities and had to maximise the profit over a period of time.
They explained us about the rules of the game and explained how to play it. As most of us were new to this thing most of us were finding it difficult to understand.But the Club coordinators were kind enough to have a trial version before the actual game so that every one can get a feel of it.
Here began the trial, they started giving us some of the facts and news so that one can make judicious decision in investing in any commodity.We all were really enthusiastic and came to know that how to buy, sell and short sell a commodity. Trial game made all of us know that what we were supposed to do in real game.
Then came the turn of actual game where it was announced that the winning team (team comprised of three people) will get a chance to be win movie tickets, which made the people play game like a professional trader.
Every team was give 10 tokens to invest in the commodities then began the round 1 where we were presented with the prices of some of the commodities and some facts.
People started buying the commodities through Broker (Pankaj, Sunil and Sri were acting brokers). Atmosphere out there reminded me of the old days stock exchange when people used to trade in equities in Stock Market shouting and screaming. Thanks God now everything is automated and is done on a computer terminal.
Round after round every one was getting more involved in the game and the atmosphere became really eclectic.After 12 rounds which was the last round of the game every one tried to square off their holdings, some people could not do so every thing was left on the mercy of Brokers. As the game ended we all handed over our transactions summary to the brokers of course after calculating our profits as every team wanted to maximize its profit to win the movie tickets, but no one could tell which team is the winner as there was lot of confusion.
We were also asked to give the name to our team and the best team name would win a prize for itself.
For results we had to wait for 4 hours. In evening at 6:30 PM when the coordinators came back with the results every one was anxious. Then they told the profits of each team. Finally wait was over and they declared the winning team and first two teams won the movie tickets at INOX, city centre.
Now it was turn of best team name all teams really came out with the nice names like commodiators, Apna sapna money money money, Raam Bharose etc. Apna Sapna Money Money Money was awarded the best name.
Then came one more surprise, it was now the turn of some on the spot questions, two questions were asked and 2 people could win chocolates for themselves.
In fact it was a wonderful beginning to TRADE Club activities and I would like to thank Sunil, Srinivas, Pankaj and Alok for starting such a great activity which has really helped us in developing the great interest for TRADE Club.Thanks to BLASH and we all will make sure that this club goes a long way and make all of us learn a great deal.
Gaurav Agarwal
07-09 batch,IIFT-Kolkata
Then Sunil and Alok (club coordinators) entered the class along with Pankaj and Srinivas. We all started listening to them as they told us that they will be starting up with a small game which will give us a glimpse of TRADE. They explained the game to us, it was virtual commodity trading game in which we had to trade virtually in some of the commodities and had to maximise the profit over a period of time.
They explained us about the rules of the game and explained how to play it. As most of us were new to this thing most of us were finding it difficult to understand.But the Club coordinators were kind enough to have a trial version before the actual game so that every one can get a feel of it.
Here began the trial, they started giving us some of the facts and news so that one can make judicious decision in investing in any commodity.We all were really enthusiastic and came to know that how to buy, sell and short sell a commodity. Trial game made all of us know that what we were supposed to do in real game.
Then came the turn of actual game where it was announced that the winning team (team comprised of three people) will get a chance to be win movie tickets, which made the people play game like a professional trader.
Every team was give 10 tokens to invest in the commodities then began the round 1 where we were presented with the prices of some of the commodities and some facts.
People started buying the commodities through Broker (Pankaj, Sunil and Sri were acting brokers). Atmosphere out there reminded me of the old days stock exchange when people used to trade in equities in Stock Market shouting and screaming. Thanks God now everything is automated and is done on a computer terminal.
Round after round every one was getting more involved in the game and the atmosphere became really eclectic.After 12 rounds which was the last round of the game every one tried to square off their holdings, some people could not do so every thing was left on the mercy of Brokers. As the game ended we all handed over our transactions summary to the brokers of course after calculating our profits as every team wanted to maximize its profit to win the movie tickets, but no one could tell which team is the winner as there was lot of confusion.
We were also asked to give the name to our team and the best team name would win a prize for itself.
For results we had to wait for 4 hours. In evening at 6:30 PM when the coordinators came back with the results every one was anxious. Then they told the profits of each team. Finally wait was over and they declared the winning team and first two teams won the movie tickets at INOX, city centre.
Now it was turn of best team name all teams really came out with the nice names like commodiators, Apna sapna money money money, Raam Bharose etc. Apna Sapna Money Money Money was awarded the best name.
Then came one more surprise, it was now the turn of some on the spot questions, two questions were asked and 2 people could win chocolates for themselves.
In fact it was a wonderful beginning to TRADE Club activities and I would like to thank Sunil, Srinivas, Pankaj and Alok for starting such a great activity which has really helped us in developing the great interest for TRADE Club.Thanks to BLASH and we all will make sure that this club goes a long way and make all of us learn a great deal.
Gaurav Agarwal
07-09 batch,IIFT-Kolkata
My First Stint with Commodities----------Praveen Dhawan
Equities, preference shares, debentures are fine but what is commodity trading? Well, that was answered in the first meeting of Trade Club. Seniors had arranged a mock trading session which was an experience in itself.
It all started with confusion and wierd questions from all and sundry. I am sure the coordinators had a tough time answering our queries. We got Rs. 10 per group. That added to the confusion. What can you possibly do with 10 bucks? And then, trading in crude oil and gold sounds good, but trading in chillies, pepper and sugar made us feel like kiryana store. But everybody was excited because our respected seniors had arranged for movie tickets at Inox for the winners. You game? Hell yeah!!!
And then the game started. As the first slide came, every group was involved in ‘deep analyses’ of what to buy and what to sell. With every passing slide, the anxiety increased and no one wanted to miss any hint. People were shouting at the top of their voices and we could get a feel of a real trading house, as if millions of dollars are at stake. We had to apply our basic knowledge of demand and supply to guess the change in prices. Yes it does sound like an easy job but believe me it’s easier said than done. We had to make sure not only to make profit but also ensure maximum gains. Around 12 groups were fighting for that coveted prize.
Gold and crude oil were pricey investments but returns were high. Prices of spices fluctuated a lot and were comparatively risky. The 12-round game gave enough opportunities to make right a few wrong decisions taken here and there. In the end we calculated the profits and team ‘Commodiators’ emerged as the winners.
It was truly a commendable effort put in by the Blash coordinators. The purpose of the game was to give a feel of ‘live trading’ and I would say that it achieved its purpose. It is important to keep a track of all the happenings around the world because now I know that as the winters start in USA, I need to put in more money in crude oil.
Praveen Dhawan
MBA(IB) 2007-09
It all started with confusion and wierd questions from all and sundry. I am sure the coordinators had a tough time answering our queries. We got Rs. 10 per group. That added to the confusion. What can you possibly do with 10 bucks? And then, trading in crude oil and gold sounds good, but trading in chillies, pepper and sugar made us feel like kiryana store. But everybody was excited because our respected seniors had arranged for movie tickets at Inox for the winners. You game? Hell yeah!!!
And then the game started. As the first slide came, every group was involved in ‘deep analyses’ of what to buy and what to sell. With every passing slide, the anxiety increased and no one wanted to miss any hint. People were shouting at the top of their voices and we could get a feel of a real trading house, as if millions of dollars are at stake. We had to apply our basic knowledge of demand and supply to guess the change in prices. Yes it does sound like an easy job but believe me it’s easier said than done. We had to make sure not only to make profit but also ensure maximum gains. Around 12 groups were fighting for that coveted prize.
Gold and crude oil were pricey investments but returns were high. Prices of spices fluctuated a lot and were comparatively risky. The 12-round game gave enough opportunities to make right a few wrong decisions taken here and there. In the end we calculated the profits and team ‘Commodiators’ emerged as the winners.
It was truly a commendable effort put in by the Blash coordinators. The purpose of the game was to give a feel of ‘live trading’ and I would say that it achieved its purpose. It is important to keep a track of all the happenings around the world because now I know that as the winters start in USA, I need to put in more money in crude oil.
Praveen Dhawan
MBA(IB) 2007-09
Our experiences on the first trade club meet…
The experience of our first trade club meet was really amazing. When novice players set out to unfold the treasure in INOX with meagre ten one rupee coins, one can easily visualise what the scene can be! In other words it was a first hand experience in commodity trading in a simulated market. To start with we had ten one rupee coins as token money and we were suppose to maximise our profit by buying or selling different commodities. The first round was a demo one and the chaos and confusion of the players went far beyond the real life situation. Anyway it was soon brought under control by diligent effort of the moderators. The demo version gave a good feel of the game and the real game started soon after the demo one.
At the outset a certain set of market conditions were announced beforehand which remained as the guiding principles throughout the whole game. Every team was given two minutes time to think, decide and get the transaction signed by the moderators. The prices of the commodities were displayed along with possible factors which could influence the prices later on in the subsequent months. The trading started on April and went on till March next year. Each and every team applied best of their strategies to maximise their profit within this period.
Forecasting the subsequent prices of the commodities with rapidly changing market scenario was the real fun of the game. One had the option to buy, sell or short sell any commodities looking at the possible future market price and inflation as well. In the final round every team tried to square off their commodities into cash so as to maximise their net profit.
To add more fun into the game, teams were asked to choose a name for their group and separate prize was reserved for the best named group.
The whole game, right from the beginning, was really a nice learning experience for all of us. It was designed in such a way that everybody, regardless of his/her prior and knowledge in trading, can participate easily. It developed an insight to understand things that go around in a commodity market. I hope BLASH will come up with more and more such efforts to enliven our experiences during the stint at IIFT.
Group members
Pallav Goswami
Neha Gupta
Prabhnoor Singh Grewal
Santosh B.
At the outset a certain set of market conditions were announced beforehand which remained as the guiding principles throughout the whole game. Every team was given two minutes time to think, decide and get the transaction signed by the moderators. The prices of the commodities were displayed along with possible factors which could influence the prices later on in the subsequent months. The trading started on April and went on till March next year. Each and every team applied best of their strategies to maximise their profit within this period.
Forecasting the subsequent prices of the commodities with rapidly changing market scenario was the real fun of the game. One had the option to buy, sell or short sell any commodities looking at the possible future market price and inflation as well. In the final round every team tried to square off their commodities into cash so as to maximise their net profit.
To add more fun into the game, teams were asked to choose a name for their group and separate prize was reserved for the best named group.
The whole game, right from the beginning, was really a nice learning experience for all of us. It was designed in such a way that everybody, regardless of his/her prior and knowledge in trading, can participate easily. It developed an insight to understand things that go around in a commodity market. I hope BLASH will come up with more and more such efforts to enliven our experiences during the stint at IIFT.
Group members
Pallav Goswami
Neha Gupta
Prabhnoor Singh Grewal
Santosh B.
Welcome to BLASH Online BLOG........
Dear friends...............
Welcome to the blash club(The trading club @ IIFT -Kolkata).From now on ,this blog can be used to pour in your views on latest happenings in WTO or in the commodities market or the club activites.Improvements,suggestions and of course "Gaaliyaan" are also welcome ...
Anyone who intends to post articles/happenings are required to mail ur article to blashclub@iift.ac.in and you are free to post your comments on the blog.......
So happy blogging and lets keep this blog alive and rocking!!!!!!!!!!!
Team BLASH
SUnil Kumar Kollu
Alok ray
Welcome to the blash club(The trading club @ IIFT -Kolkata).From now on ,this blog can be used to pour in your views on latest happenings in WTO or in the commodities market or the club activites.Improvements,suggestions and of course "Gaaliyaan" are also welcome ...
Anyone who intends to post articles/happenings are required to mail ur article to blashclub@iift.ac.in and you are free to post your comments on the blog.......
So happy blogging and lets keep this blog alive and rocking!!!!!!!!!!!
Team BLASH
SUnil Kumar Kollu
Alok ray
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