MCX on Tuesday said it would launch trading in gold options on the day of auspicious Dhanteras, October 17. The commodity exchange has been engaged with the members for a few months now to prepare for the launch of options.
Options trading is seen helping hedgers minimise price risk and deepen the market by encouraging institutional participation.
In Gold options, the options that end out-of the -money at expiry will be squared off at a loss. On the other hand, holders of options ending in-the -money will have a choice to either square off at a profit or to convert into a futures position. Most, it is believed, will prefer to square off rather than exercise to convert to a futures position, which entai.
Shares of MCX, which is listed on stock exchanges, were trading 0.73 % lower at Rs 1,066 on BSE.
MCX Gold price started positive today and remained in the green throughout the day. Spot gold prices increased by 0.28 percent and close at $1287.5 per ounce due to weak dollar index and geopolitical tensions in Spain and North Korea.
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