The Multi Commodity Exchange of India (MCX) has launched trading on nickel options, making it the third base metal derivatives on its platform. The exchange already offers base metal options on futures in copper and zinc and option contracts in gold, silver and crude.
The nickel options contract will be based on 1,500 kg nickel futures contracts with tick size of 5 paisa and strike interval of Rs 20, making it the most expensive base metal being traded as the single lot will come for Rs 23.25 lakh, adding the nickel options on futures will be devolved into nickel futures underlying.
The new product will suit all participants, be it investors, traders and hedgers the options contract will provide a more cost-effective tool. The options contract will provide a more cost-effective tool for hedgers even as the underlying futures contract has gained good traction.