Did MCX Just Transform Bullion Trading with New Options?
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Synopsis
The Multi Commodity Exchange of India has launched options contracts on its Bullion Index, revolutionizing trading strategies for gold and silver investors. With this innovative product, MCX aims to enhance risk management and capitalize on the burgeoning demand for precious metals. Discover how this development could reshape the futures market.
Key Takeaways
- MCX launched options contracts on the MCX BULLDEX.
- The contracts enable diversified trading in gold and silver.
- Gold prices increased by over 50% this year.
- Options trading offers enhanced risk management tools.
- Continuous trading is ensured with monthly index contracts.
Mumbai, Oct 27 (NationPress) The Multi Commodity Exchange of India (MCX) has officially launched options contracts for its MCX iCOMDEX Bullion Index (MCX BULLDEX) on Monday, providing investors with a fresh avenue to trade and manage risks in the rapidly escalating gold and silver markets.
The options contracts became operational today (October 27). The MCX BULLDEX index comprises the most actively traded and liquid gold and silver futures available on the exchange.
By uniting both metals, the index delivers market participants—ranging from investors to institutions—with a well-rounded exposure to the bullion sector.
MCX highlighted that the new options contracts will offer traders an effective risk management tool that merges the benefits of diversified underlying assets with the adaptability of options trading.
The launch is in line with MCX's commitment to enhancing India’s commodity markets through innovation, transparency, and products that are friendly to investors.
Commenting on this development, Praveena Rai, MD & CEO of MCX, stated, “The launch of options on MCX BULLDEX signifies a key advancement in India’s commodities landscape.”
“This distinctive and innovative product will broaden the offerings within the commodity derivatives market and assist participants in gaining exposure to a collection of commodities in the bullion sector,” Rai added.
This launch coincides with a period where gold and silver prices have experienced a significant upturn this year. Gold prices have soared over 50%, while silver has surged nearly 70%, propelled by strong global demand and safe-haven purchases.
The monthly index contracts will feature a trading cycle spanning three months—near month, mid-month, and far month.
Upon the expiration of a near-month contract, a new one will be introduced, ensuring uninterrupted trading.
Investors can engage in trading these options from Monday to Friday between 9 am and 11:30/11:55 pm, depending on US daylight saving timings.
According to MCX, the derivative contract will have a minimum valuation of Rs 5 lakh at the time of its market launch.
Following this announcement, MCX shares experienced a boost of 2.5 percent, reaching a peak of Rs 9,244.90 on the BSE.
Point of View
The recent launch of options contracts by MCX marks a significant evolution in India's commodity market landscape. The introduction of innovative products such as the options on the MCX BULLDEX not only enhances trading opportunities but also reflects a commitment to fostering a robust trading environment that benefits investors across the board.
NationPress
29/10/2025
Frequently Asked Questions
What are the new options contracts introduced by MCX?
The new options contracts are based on the MCX iCOMDEX Bullion Index (MCX BULLDEX), allowing traders to manage risk and trade in gold and silver markets more effectively.
When did the options contracts become effective?
The options contracts became effective on October 27.
What is the minimum valuation of the derivative contract?
The derivative contract will be valued at a minimum of Rs 5 lakh at its launch.
What trading hours are available for these options?
Investors can trade these options from Monday to Friday between 9 am and 11:30/11:55 pm, depending on US daylight saving timings.
How much did MCX shares increase following the announcement?
MCX shares rose by 2.5 percent, reaching a day's high of Rs 9,244.90 on the BSE.
