New Delhi, Oct 17 : Union Finance Minister Arun Jaitley on Tuesday launched options trading
in gold on country’s leading Multi commodity exchange (MCX) on the occasion of
Dhanteras here. People celebrate Dhanteras by purchase or gifting of precious
metals like gold and silver. Describing it as one of the steps towards formalising
gold trade in the country, the Finance Minister said it hedges all risks by
giving traders the option of futures. An option trading is an instrument that
gives the buyer a right to buy or sell an underlined at a present price on a
future date. To start with, the options trading will be available on a 1 kg
gold futures contract. The contracts will expire in November and in January
2018. "Indians are great buyers of gold. This new product will be
extremely successful," he said. "I am sure the more it formalises,
better it is for consumers, jewellers and those trading in this. That's in
consonance with the business environment for future that we see for us,"
Jaitley said. Securities and Exchange Board of India (SEBI), allowed MCX in
August to launch options trading in gold. Depending on the success of the gold
options, MCX will seek the regulator's permission for options trade in other
commodities like cotton, crude palm oil, silver and copper, MCX Chief Executive
Mrugank Paranjape said. UNI
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