The Bombay Stock Exchange ( BSE) on Monday began trading options (derivatives) in small lot contracts in gold and chandi bullion metals in an attempt to sell new products to the commodity market partners. That includes options for contracts including Gold Mini and Silver Kilo. Gold trading will commence option trading at the National Stock Exchange ( NSE) from June 8.
According to the exchange statement ‘Gold Mini’ was introduced in silver in 100 gram category and ‘Silver Kilo’ contract. Future traders get oats to guard against volatility in their future prices through options deals. Under this the contract holder or seller may buy or sell the products at a fixed price to the other party. Full-time member of capital market regulator SEBI S.K. Mohanty started these new options contracts. He said that this is the right time to start such contracts.
Ashish Kumar Chauhan, managing director and CEO, Bombay Stock Exchange (BSE), said on the occasion, “The opening of options trading in goods contracts on BSE Commodity platform helped small jewelers, retailers to reduce price risk.” Milli. “Sameer Patil, Chief Business Office, BSE said that these contracts would be delivery contracts and the deals would be terminated with the physical delivery of goods at the time of their expiry.