Multi Commodity Exchange of India (MCX) is going to launch a spot exchange in base metals from Monday (October 19). The index will help develop and discipline the fragmented physical market and complement bourse’s delivery-based futures market.
Speaking to CNBC-TV18, Rishi Nathany of MCX said that it is a very well balanced index with all the 5 base metals.
“It gives you a portfolio approach to all the base metals. Base metals are normally indicator of economic activity. So someone can take an exposure to this index based on their perception of the economic activities,” he said.
Nathany further added that this is a cash settled product. “The current pricing is around 11,800 which makes the lot size slightly less than 6 lakh and the margins would be roughly around Rs 50,000-60,000. So, it becomes very accessible to even smaller participants in the market,” he said.