Traders switch from futures to option because of the lower cost.
The rise in crude oil options reached ₹ 3,560 crores on Thursday.
Trade levels slowly switching to options from the future because investors pay on premium but it’s not the future trading turnover.
Generally, premium turnover is only 1-2%.
Discount transaction fees on MCX for option.
Crude oil was at ₹ 1,144 crores in the March quarter, but its average daily revenue increased to ₹ 1,900 crores in the June quarter.
The crude futures contract fell to 28,031 in the June quarter.
Crude oil prices were in high demand in the second half of this year. members of dissent Due to the result of increasing production OPEC+ countries delay so the prices are high.
According to Daban Patel, Senior Analyst (Products), HDFC Securities, crude oil prices have been in high demand since the second half of this year. Prices soared as OPEC Plus countries delayed a decision to increase production based on disagreement among members.
MCX crude oil prices are accumulating with the additional support of rupee depreciation in line with global crude oil prices.
Traders are moving slowly into the crude future as the initial amount of MCX crude oil needed to trade in the future is very high compared to the pre-epidemic levels.
In contrast, crude oil options saw record returns with flat trading fees on the MCX. MCX has a higher cash flow compared to the recent rally in oil products and other commodities.
Crude oil futures trading was lower last year because of higher volumes last year and a negative price on crude, said Narinder Wadhwa, president of the Commodity Participants Association. With crude oil prices volatile over the past few months, traders are now protecting their risk on the transfer platform.
The optional tool is inexpensive and is widely used in derivatives in India, he said.
