How NCDEX Spot is different from Mandi Operations?
It is not the same old Spot trading model. Consider the following benefits, none of which is available in the current spot market transactions • The seller has prior knowledge of the spot and futures prices at his own or at a nearby centre. This provides him with the option of selling his produce at the centre of his choice. • Since the goods are assayed prior to sale, he knows the grade of his produce and can guage the true price of his product based on the benchmark grade price and the applicable premium or discount accorded based on the grade.
It is not the same old Spot trading model. Consider the following benefits, none of which is available in the current spot market transactions • The seller has prior knowledge of the spot and futures prices at his own or at a nearby centre. This provides him with the option of selling his produce at the centre of his choice. • Since the goods are assayed prior to sale, he knows the grade of his produce and can guage the true price of his product based on the benchmark grade price and the applicable premium or discount accorded based on the grade. • The Spot platform would offer excellent opportunities for arbitrage against future prices if the goods in the spot market conform to futures quality.
