MCX Launches Options Contracts on Bullion Index, Enhancing Risk Management for Investors
The Multi Commodity Exchange of India (MCX) has introduced options contracts on the MCX iCOMDEX Bullion Index (MCX BULLDEX), providing investors with a new tool to manage risk in the gold and silver markets.
McxBullion IndexOptions ContractsGoldSilverReal Estate PuneOct 27, 2025
The MCX BULLDEX index is composed of highly traded and liquid gold and silver futures listed on the exchange. By combining both metals, the index provides market participants, including investors and institutions, with a balanced exposure to the bullion segment. MCX stated that the new options contracts will serve as a powerful risk management tool, combining the advantages of diversified underlying assets with the flexibility of options trading.
Speaking about the development, Praveena Rai, MD & CEO of MCX, said, “The introduction of options on MCX BULLDEX marks a pivotal development in India’s commodities ecosystem.” She added, “This is a unique and innovative product that will enhance the range of offerings in the commodity derivatives market and help participants gain exposure to a basket of commodities in the bullion segment.”
The launch of these options contracts comes at a time when gold and silver prices have seen a significant rally this year. Gold prices have surged by over 50%, while silver has jumped nearly 70%, driven by strong global demand and safe-haven buying. The monthly index contracts will have a three-month trading cycle, including near month, mid-month, and far month. Once a near-month contract expires, a new one is introduced, ensuring continuous trading.
Investors can trade these options from Monday to Friday between 9 am and 11:30/11:55 pm, depending on US daylight saving timings. According to MCX, the derivative contract will be valued at a minimum of Rs 5 lakh at the time of its launch in the market. Following the announcement, MCX shares jumped 2.5% to hit a day’s high of Rs 9,244.90 on the BSE.
The Multi Commodity Exchange of India (MCX) is a leading commodity derivatives exchange in India, offering a wide range of products across various sectors, including bullion, energy, and agricultural commodities. The introduction of options on the MCX BULLDEX is expected to further deepen India’s commodity markets and attract a broader range of investors and institutions.
Frequently Asked Questions
What is the MCX iCOMDEX Bullion Index (MCX BULLDEX)?
The MCX iCOMDEX Bullion Index (MCX BULLDEX) is an index composed of highly traded and liquid gold and silver futures listed on the Multi Commodity Exchange of India (MCX). It provides a balanced exposure to the bullion segment for market participants.
When did MCX launch the options contracts on MCX BULLDEX?
MCX launched the options contracts on MCX BULLDEX on October 27.
What is the trading cycle for the options contracts on MCX BULLDEX?
The options contracts on MCX BULLDEX have a three-month trading cycle, including near month, mid-month, and far month contracts. Once a near-month contract expires, a new one is introduced to ensure continuous trading.
What are the trading hours for these options contracts?
Investors can trade these options from Monday to Friday between 9 am and 11:30/11:55 pm, depending on US daylight saving timings.
What is the minimum value of the derivative contract for these options?
The minimum value of the derivative contract for these options is Rs 5 lakh at the time of its launch in the market.
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