Launching a contract for the sale of saffron until the end of the year
Hamed Soltani Nezhad, Managing Director of Iran Stock Exchange, said: Considering the widespread acceptance of market participants for launching futures and certificates of saffron, and its positive impact on transparency of the price of saffron and the elimination of intermediaries, the Iranian stock exchange decided to open contracts for the contract of saffron By the end of this year.
He added: “The Iranian stock exchange is aimed at covering the risk of the price of saffron deals and, consequently, the possibility of planning and managing long-term supply and demand for farmers and activists in this field, as well as the development of derivatives transactions, which is one of the main pillars of the development of the capital market of the country. Launched Saffron futures for the first time in Iran in the beginning of the year, which was welcomed with high expectations.
According to Soltani Nezhad, since the launch of these deals, more than 11 million futures contracts have been traded at Iran Stock Exchange.
Managing director of Iran’s stock exchange said that the introduction of new trading instruments would reduce transaction costs, increase transparency and increase the level of exchanges, said the launch of future contracts for saffron this year has led to the development of traditional market structures for modern structures and the development of domestic markets for saffron. Therefore, due to the widespread appreciation of the market participants from futures and certificates of saffron deposits, contracts for the purchase of saffron will be launched by the end of this year.
Soltani-nezhad expressed the benefits of using this trading instrument, saying that bargaining deals would allow farmers to secure sales at certain prices. In addition, due to the low transaction costs and price transparency in the Iranian stock exchange, the entry of farmers into this market will lead to the elimination of more intermediaries and the management of the price of saffron.
Managing director of Iran Stock Exchange added: “The establishment and further development of commodity-based derivatives will ensure the farmer’s confidence in future prices and the decision to cultivate and sell in the future.”
Soltani Nezhad said that the deals for saffron futures traders act as a complementary tool and investors and activists can manage their capital by controlling the risk of price fluctuations, said: Due to the process of delivery of these contracts by Certificates of merchandise deposit and warehouses approved by the Commodity Exchange of Iran, the activists of this market can safely deliver the quality and standard of delivery of saffron according to the specified standards, at the expiration of these contracts from the warehouse.
According to the report, the option of a transaction is a two-way contract between the buyer and the seller, according to which the buyer of the contract has the right (not the obligation and obligation) to buy or sell a certain amount of the asset specified in the contract at a specified price at a specified time. In fact, in this agreement, the two parties agree to make a deal in the future, so that the buyer of the transaction, in exchange for payment of a certain amount, has the right to purchase or sell the assets specified in the contract at a specified time at the price specified when the contract is concluded. , Obtains.
On the other hand, the vendor of the bargaining power is ready to sell the asset, in exchange for the contract, by giving the buyer a certain amount of money at the time of signing the contract. As stated in the definition of the contract, the holder of the contract (buyer) exercises the right autonomously, in other words, it has no obligation and is not obligated, and if he disregards the performance of the contract, he loses the amount paid for this right. On the other hand, the seller will have to execute the contract if the buyer wishes.
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