The sale and price of saffron are insured in the stock exchange

The sale and price of saffron are insured in the stock exchange

Mohammad Reza Khajeh Nasiri, Managing Director of Civilization Funding, commented on Iran’s stock exchange action to launch a Saffron Transaction Agreement this past March, saying: “The main advantage of financial instruments is the possibility of covering future price risk, which option contract is also due to the minimal and specific risk, the possibility And it gives new authority to saffroners, while saffroners can optionally sell their products and prices for their products over the next few months.
He added that the use of new financial instruments, including deals on bargaining options at international exchanges, is very common because they are very effective in many aspects, especially in terms of profitability and risk coverage.
According to the chief expert of the capital market, the crucial point is that as economic factors fluctuate more and future risks and predictions become more difficult, risk management tools and tools such as bargaining power are needed, so investors and Economic agents are keen to reduce their risks by using these tools.
For example, the exchange rate fluctuations will affect futures prices for investors, but launching and developing tools such as options based on different commodities in the Iranian stock market, conditions are far better for secure and secure economic operators. Gets worse.
He said: “Exchanging commodities through the development of financial instruments, such as future contracts and options, will allow market risk and speculative activities from the physical market to attract financial and paper markets, which in our economy is extremely helpful and effective. Section will be.
Khajeh Nasiri said: Considering the good interest of the agricultural market participants in the financial instruments of the stock exchange, such as the future contract and the certificate of deposit of saffron, it is expected that the launch of contracts for the negotiation of contracts for saffron is expected to be welcomed.
He added: “As time goes by and the traditional section is more familiar with how these tools work, and institutions like funds that work professionally and make services easier for the public, they are more active. The depth of financial markets is increasing It finds that agricultural actors are familiar with the benefits of financial instruments; financial institutions specialize in commodity markets, rather than people and investors directly investing in commodity markets.
This is the expert in Capital Markets, in response to the question of whether there is the possibility of reciprocating the price of saffron in the world through Iran’s stock exchange? He said: “How to find the price of saffron on the stock exchange shows that there is a possibility for the saffron price to be traded through commodity exchanges, while the greater the volume of the market and the intermediary financial institutions created between farmers, producers and the market, the depth of the market increases Finds the market faster and makes the price better.
He said: “Therefore, we must step through the development of infrastructure and the use of new platforms for the internationalization of the market for saffron through the mechanism of the Iranian stock exchange, because when a product is traded through stock exchanges and through financial instruments, prices are more accurately discovered and transparency and Stability in markets prevails.