Largest commodity bourse MCX would unveil the country's first commodity options trading with gold on the auspicious occasion of Dhanteras.
The gold options will be launched tomorrow on Dhanteras in presence of Finance Minister Arun Jaitley in New Delhi, bourse officials said.
"We are excited to launch gold options contracts, which signifies dawn of new era that sets in motion the transformation of the Indian commodities market," MCX MD and CEO Mrugank Paranjape told PTI.
The country so far allowed only futures contracts for hedging in commodities.
MCX will be launching commodity Options on futures with MCX Gold 1 Kg futures contracts.
The industry had to await for this new instrument since year 2003 when then NDA government opened up the Indian commodities market.
Options are akin to a form of price insurance and, therefore are best suited for hedgers.
With options small investors now can participate in commodity trading.
European put and call gold 1 Kg Option contracts on underlying MCX Gold December 2017 and February 2018 will be made available by the Exchange for trading from tomorrow.
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