Commodity exchange NCDEX today announced the launch of smaller size contracts in castor seed and chana.
The lot size will be one tonne and the contract is available for trading from tomorrow, NCDEX said in a release.
The ticket size for both the contracts will be Rs 2.
Though NCDEX already has a liquid 10 tonne contract in castor seed and chana, which is very popular among the market participants, however, the exchange observed that one section of trade is unable to participate in this contract.
"To facilitate a platform for trade for the small retail participants, we launched smaller size contracts in castor seed and chana. This contract is designed in such a way that it will remain closely correlated with the main contract. This initiative will help us tap the next level of participation," NCDEX Managing Director and Chief Executive Officer Samir Shah said.
The small retail participants, who want to trade in castor seed and chana, but do not trade since the size of existing contract is large and consequently the initial margin and other margins payable are on the higher side.
With the launch of 1 tonne contract the participants can now trade at about 1/10 of the earlier margin requirement.
