MCX, the largest commodity prices exchange, has launched monthly Options contracts on the MCX iCOMDEX Bullion Index (MCX BULLDEX).
The index represents the precious metals segment, including the most liquid MCX Gold and Silver Futures contracts.
The Options contracts on this index will enable market participants with a risk management tool, combining the benefits of diversified underlying assets with the flexibility of Options trading.
MCX BULLDEX, covering both Gold and Silver, offers balanced exposure to the bullion segment to market participants – both individual investors and institutions alike – conveniently and cost-effectively that meets both their investment and hedging requirements, said the exchange.
Options on BULLDEX are available at a time when options are becoming more popular than futures contracts due to their cost-effectiveness.
Options on indices are highly popular as an investment tool, and Options on a sectoral index, such as BULLDEX, will gain traction as investors’ interest in bullion increases amid the sharp rally in prices.
Though gold prices have fallen of late, they have delivered an over 55 per cent return so far this year and have the fuel to reach further heights amid uncertain global developments.
Praveena Rai, MD & CEO, MCX, said that Options on BULLDEX will expand the product range in the commodity derivatives ecosystem and help market participants gain exposure to a basket of commodities in the bullion segment.