SEBI has introduced Commodity Options Trading.
Exchanges will allow trading shortly.
SEBI has introduced Commodity Options Trading.
Exchanges will allow trading shortly.
How it works?
Commodity Options will have the respective Commodity’s Futures contract as the underlying
Commodity Options will be settled at the futures price on expiry with an option for holders to convert their positions to futures contracts (Devolvement).
Options expiry will be few days ahead of the underlying Futures expiry
Example for reference purpose only
If You buy Gold Options on 6th Oct and Gold Futures contract expires on 5th Nov. Option position will convert (Devolve) into Futures contract on 28th Oct.
If you wish to continue position, you will have to pay standard margin in 3 days prior as of that date to devolvement as applicable
25 Oct – 25% of Future Margin
26 Oct – 50% balance of Future Margin
27 Oct – 100% balance of Future Margin
The brokerage shall be charged 250 per Lot in Angel Broking.
If you are interested to trade in commodity options click below.
Note:
By clicking “I Am Interested” you are aware and have understood the Risk of Options Holder and Writers associated with Options Trading
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