MCX Launches Monthly Options Contracts on MCXICOMDEX Bullion Index

The Multi-Commodity Exchange of India (MCX) has introduced monthly options contracts on the MCXICOMDEX Bullion Index (BULLDEX). These derivative products offer market participants new risk management and trading opportunities in one of India’s most prominent bullion indices.

MCXICOMDEX Bullion Index Options: Launch & Trading Start

MCX has launched monthly European-style options contracts with the MCXICOMDEX Bullion Index (BULLDEX) as the underlying. Trading began on October 27, 2025, with contracts expiring one business day before the start of the rollover period for the index. Expiry generally falls on the last Wednesday of each month, or the previous trading day if Wednesday is a holiday. Members should note that the maximum single order size is 30 lots per transaction.

Contract Specifications and Key Features

The contracts have a minimum lot value of ₹5,00,000, ensuring they cater to serious market participants. Each contract has 71 strike prices (35 in-the-money, 35 out-of-the-money, and one near-the-money), with a strike interval of ₹100. The contracts can be held for up to three consecutive months, giving traders flexibility in their strategies.

Trading is available from Monday to Friday, between 9:00 AM and 11:30/11:55 PM (depending on U.S. daylight saving time). Margins are calculated on a portfolio basis using SPAN, and all premiums for buyers are blocked upfront.

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Settlement and Exercise Mechanism

These options are European-style, so they are exercised automatically only if they are in the money at expiry, unless the holder instructs otherwise. Settlement is done in cash. The final settlement price is based on the volume-weighted average price of the index’s constituents from 4:00 PM to 5:00 PM on expiry day. Lot sizes are reviewed periodically to ensure minimum contract values remain above ₹5,00,000.

Conclusion

The introduction of MCXICOMDEX Bullion Index monthly options contracts brings a dynamic tool for bullion trading and hedging, offering broader exposure and efficient price risk management for market participants across India’s evolving bullion landscape.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.