Efficient Use of Bullion Futures in Hedging



Raipur, October 24, 2015: Multi Commodity Exchange of India Ltd. (MCX), and Sarafa Association, Raipur, jointly organized an educational programme in Raipur, Chhattisgarh for the association members. It aimed at creating awareness on hedging bullion price exposures, and furthering the participation of market players from the bullion industry in the commodity futures market.

Designed and delivered by the experts from MCX, the intensive programme focused on equipping the market participants with a comprehensive overview of the commodity futures market in India, which has been gradually increasing, with its economy becoming more aligned with the global economy. The experts further shed light on the fact that the value chain participants of the commodity ecosystem who are getting increasingly exposed to the price risks inherent in international trade must learn to protect their margins by hedging on commodity exchanges such as MCX.

The interactive session further focused on functioning of commodity exchanges, the benefits of commodity futures for trading, price discovery, and price risk management. The participants were also briefed about different variants of gold—1 kg to as small as 1gm— and silver— varying from 30 kg to 1 kg—futures contracts with different denominations offered by the exchange, to cater to the needs of varied market participants.

Mr. Harak Malu, President, Sarafa Association, Raipur said, “The commodity futures exchanges such as MCX offer an endless amount of opportunity to the commodity value chain participants, including the bullion stakeholders from varied geographies across the country to effectively manage their price exposures.”

Separately, MCX’s efforts in contributing to the inclusion process through organizing awareness programmes throughout the country, thus, enabling various stakeholders to benefit directly or indirectly from the commodity markets, is worth a mention. We would be happy to collaborate with MCX for more such educational programmes and workshops in the near future”, he added.


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