MCX launches Gold Mini Options from today. Here is all you need to know
The regulatory board has given the approval to MCX to launch Gold Mini Options with Gold Mini (100 grams) bar as underlying.Updated: Jul 10, 2020 12:48 IST
The Multi Commodity Exchange (MCX) launched Gold Mini Options from Friday after receiving the regulatory nod from the Securities and Exchange Board of India (Sebi).
The regulatory board has given the approval to MCX to launch Gold Mini Options with Gold Mini (100 grams) bar as underlying.
The commodity exchange said is a statement that Gold Mini Option August 2020, September 2020 and October 2020 contracts will be available for trading with effect Friday. The maximum single order size will be of 100 lots, it said.
A derivative contract, the option is a financial product whose price is linked to that of an underlying asset. In the case of Gold Mini Options, the underlying asset will be the Gold Mini bar of 100 grams or the price of the derivative contract will be linked to the price of the bar.
The expiry date of the Gold Mini Options will be the same as that of gold mini futures i.e. fifth of every month.
The commodity exchange has said that a maximum size of 100 lots for a single order will be available to members.
Stock exchange BSE launched a gold mini and silver kilo options on June 1, while the larger NSE launched gold mini options on June 8.
(With agency inputs)