Kotak Securities Commodity Dealer Interview Questions and Answers

Option trading is a financial derivative that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price within a specific time period.

• Option trading involves buying and selling options contracts based on the future price of the underlying asset.

• There are two types of options: call options (which give the buyer the right to buy the asset) and put options (which give the b...read more

Hedging is a risk management strategy to protect against adverse price movements, while speculation is a strategy to profit from price changes.

• Hedging involves taking an offsetting position to reduce the risk of price fluctuations.

• Speculation involves taking a position in the market to profit from anticipated price movements.

• Hedging is commonly used by businesses to protect against potential losses, while speculation i...read more

Communicate clearly, listen actively, build rapport, provide relevant information, and follow up.

• Establish rapport by greeting the client warmly and using their name.

• Listen actively to understand their needs and concerns.

• Provide relevant information about commodities, market trends, and pricing.

• Communicate clearly and concisely, avoiding jargon or technical terms.

• Follow up with the client to ensure satisfaction and add