instruments · intermediate
Commodity options in India
Commodity options are exchange-traded puts and calls on commodity underlyings such as crude, gold, or agri contracts.
Indian commodity derivatives trade on exchanges such as MCX under SEBI regulation.
Options can be cash-settled or linked to futures settlement depending on the contract design.
CTT and exchange margins form part of the trading cost stack for commodity options.
Position limits and product specifications vary by commodity and client category.
Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.