MCX's gold options turnover hits year's low on volatility, contract sizes

Volumes fell as volatility moderated, contract sizes as large as Rs 31 lakh deter retail participation

The turnover from options contracts on the Multi Commodity Exchange of India (MCX) has declined to hit a one-year, with the daily average at Rs 434 crore in April 2019, compared with Rs 727 crore in May 2018. The turnover was lower even on sequential basis, with the March 2019 figure coming in at Rs 591 crore.

One reason for the decline is that size of some contracts was higher for retail investors. Besides, with volatility in gold having moderated, there was a drop in volumes, although open interest in gold options was very good, even as volatile crude options