On Tuesday, the Commodities exchange MCX announced that it has gotten the SEBI go-ahead to launch futures contracts on gold mini (100 gm) and silver 5 kg options. The BSE has pioneered a gold mini and silver kilo options on June 1 while the larger rival NSE introduced gold mini options on June 8.
The exchange will launch the gold mini options starting from August. Also, with expiry matching with gold mini futures.
Since establishment, the gold mini futures contracts witnessed dispatch of 52 tonne and it expects the new mini options will entice the small and mid-sized players into the gold market.
As of now, MCX is currently offering options on gold and silver futures which depute into futures contracts before the expiry directing to higher holding cost as margin to trade gold futures is much higher than premia for a call or put option.