The Multi Commodity Exchange (MCX) has unveiled monthly silver Options contracts to enhance flexibility for small and medium-scale hedgers. These contracts are expected to help jewellers and bullion traders manage price risks more efficiently during crucial seasonal periods. This initiative mirrors the success seen in monthly Options trading in gold.
MCX has rolled out 2 sizes of silver Options contracts: 5 kg and 30 kg, to accommodate varying hedging needs. These contracts offer expiry periods focused on seasonal demand and procurement patterns, specifically September to December and December to March. This timing aims to align with the busy wedding and festive seasons in India.
The new offerings are designed to benefit small and medium jewellers who need shorter-duration hedging instruments. As Shivanshu Mehta, Head of Bullion at MCX, explained in an interview with CNBC-TV18, “The idea is to support efficient hedging with economical premiums and flexible tenures.”
These contracts allow market participants to customise their risk management strategy without committing to long-term positions.
The silver Options launch comes after the introduction of gold monthly Options in November last year. Since then, the turnover has seen a significant rise.
“That’s the kind of growth we’ve seen,” said Mehta, noting the increase from ₹6,100 crore in FY24 to ₹28,100 crore in FY25.
The rapid expansion highlights the increasing adoption of structured hedging tools in India’s commodity markets.
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MCX has cemented its position as a key player in the global commodity Options space. “As per an FII study, MCX is the largest commodity Options exchange globally by number of lots traded. For both gold and silver, it's the second largest globally,” Mehta noted.
This development underlines India’s growing prominence in the global bullion derivatives ecosystem.
With the introduction of these monthly silver Options, MCX continues to provide market participants with tools that reflect actual hedging needs and trading behaviours. While the instruments are still new, their alignment with physical market cycles suggests a strong foundation for future adoption.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/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 the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jun 16, 2025, 4:31 PM IST
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