Futures contracts primarily discovers price and manages price risk with respect to a particular commodity. The producer gets an idea of the price that is likely to be in the future helping him to decide between various competing commodities. The exporter, on the other hands, gets to know about the likely prices of the future and can quote a more realistic price on his items. So it minimizes Monopoly in the market.

Do you know what will the price of Gold in next Three months in nepal ? Can you guess who give the price for that time? It is just negotiated between you and us today under the influence of present/future supply, demand, national/International economic indicators, investors sentiments. No exact MONOPOLY for good or bad. Lastly Futures Trading balance the price of commodity every time in the market. We should be proud of being voter for future prices.

In Kathmandu, price of vegetables are quite expensive. Commodity price is out of control. Do our farmers get good price of their products, of course not in our opinion. Farmers never ever get satisfied as there is broker who defines his own price for farmer products and no mechanism to control his trading, If Futures Trading applied; Farmers get price or booking of products before or after  production under satisfied agreements.

Other Benefits of futures trading in (DFT)Nepal are:

1. Price stabilization-during the period of volatile  price fluctuations

2. It provides common pricing platform in the country.

3. It enhances production and manufacturing activities.

4. Helps balance in supply and demand position throughout the year.

5. Encourages competition and acts as a price barometer to farmers and other trade functionaries. 

However there are safeguards to check misuse of futures trading by unscrupulous spectators. These are:

1.Limit on open position of an individual operator to prevent over trading.

2. Limit on price fluctuation (daily/weekly) to prevent abrupt upswing or downswing in prices.

3. Special margin deposits to be collected on outstanding purchases or sales to curb excessive speculative activity through financial restraints

4. Minimum/maximum prices to be prescribed to prevent future prices from falling below the levels that are remunerative and from rising above the levels not warranted by genuine supply and demand factors.

5. During shortages, extreme steps like skipping trading in certain deliveries of the contract, closing the markets for a specified period and even closing out the contract to overcome emergency situations are taken.

 Prospects of Futures trading in Nepal : Market Nepal

Principle of futures Trading started from the era of "Kautilya Econmics" however we have no mechanism to control prices in the market of Nepal . The trading platform we have now do not influence local market but we have tools to deploy in our country where ever it requires.We have elecotronic trading tool for futures trading of  preciousmetals and energy products. Only few organization provides delivery on demand.

We have a solution where every people can grow. New India is made by mass of software professional’s skills, so as China , now it is Turn of Nepalese people, let us use brains and be a discipline Investor- Businessman. Work with us, you can learn those good experiences. Futures trade is required in Nepal in order to fulfill WTO obligations. There is also other advantages of commodity trading in Nepal and investment with DFT Nepal. Commodity trading is not affected by uncertainty and political situation of Nepal.

There is also personal benefit of commodity trading. You can also help to the commodtiy market through the price research.when you are trading the commodity futures you have to self analysis of current market price and economic condition of nation and also you have to judge the worlwide economic situation and its effect for the world. It develops the your research field then you can contribute the nation by your pholosophy of idea.

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