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The country’s largest commodity exchange MCX is all set to launch options trading on Nickel (1500 kg) futures from December 13, 2021 for investors and traders. The announcement comes from MCX after it has received all necessary approval from market regulator SEBI
Initially, three options contracts expiring in January 19, 2022, February 17, 2022 and March 22, 2022 will be available for trading with the underlying futures contracts.
The position limits for options contracts at the client level would be 2,000 MT or 5 per cent of the market-wide open position, whichever is higher, across all Nickel Options contracts combined together.
For members, the limit would be 20,000 MT or 20 per cent of the market-wide open position, whichever is higher – across all Nickel Options contracts together.
The MCX options contract will have a strike price interval of Rs 20, while the tick size (minimum price movement) will be Rs 0.05. The delivery centre and price quote of the contract is ex-warehouse, Thane, Maharashtra. The Settlement of premium or Final Settlement will be T+1 day.
To read the MCX circular, click here