MCX launches Gold options trade on Dhanteras

Making a significant addition to the Multi Commodity Exchange (MCX), Arun Jaitley launched the options contract for gold on MCX on Tuesday on the occasion of Dhanteras.

Options are instruments that give the buyer a right to buy or sell an underlined commodity at a present price on a future date. The two kinds of options are calls and puts.  Call  is the right to buy and put is the right to sell. Options are sought after as a more competitive hedging instrument as compared to futures for hedgers.

MCX surged on the bourses on Tuesday to hit an intraday high of Rs. 1,157 per share, higher by over 2  per cent  on NSE. The stock recorded a traded volume of 3,04,450 shares and a traded value of Rs. 3,492.29 lakh on NSE.

The stock had hit its 52-week high of Rs. 1,413 per share on December 9, 2016 and its 52-week low of Rs. 930.10 per share on May 24, 2017 on NSE, respectively.

At 1141 hours IST, the stock was trading at Rs. 1,140.35 per share, higher by 0.83  per cent  on NSE. Meanwhile, S&P BSE Sensex was trading at 32,651.36 level, higher by 0.05  per cent  and NSE Nifty50 was trading at 10,242.20 level, higher by 0.11  per cent  on Tuesday.