These figures mark a significant milestone for NSE commodities, and we’re excited to welcome Hitesh Sethia to answer all your questions on this exciting growth.
But don’t limit your queries to commodities alone! Hitesh brings extensive market experience and will be open to questions on NSE operations, broader market insights, and trading strategies. This is your chance to learn directly from an NSE expert—make it count!
Date: 14th November, Thursday
Time: 10 AM onwards Hitesh will start sharing his thoughts
Join us and bring your questions for a well-rounded discussion.
Are there any plans to introduce new products or features within the crude oil options market to attract a broader range of participants, such as retail investors or small traders
With crude oil being a globally volatile commodity, what risk management strategies does NSE employ to protect traders from extreme price fluctuations?
Hi
In April 2020, we witnessed extreme price movements when crude oil prices went negative. Our systems are equipped with features to handle negative pricing and provide strike prices in such scenarios.
On the days when we observe volatility which is higher than daily average, the exchange has a Daily Price Range/Operating Price Range for each strike as part risk management which in turn protect investors too.
To further protect investors, we will soon be introducing a limit price protection feature.
From a trader’s perspective, both crude oil and natural gas are internationally traded commodities. As a result, volatility in global markets directly impacts prices on Indian commodity exchanges, since we are price takers for these products.
Yes, we have plans to introduce new energy products and with small contract size denomination (subject to SEBI’s approval)
New products will attract retail investors with financial interest and hedgers who wish minimise their price risk.
Economical transaction charges in NSE Commodity segment are as follows:
Commodity futures : INR 10 per crore on notional value plus GST
Commodity Options : INR 100 per crore on premium value plus GST
The most active commodity contract at NSE are Crude oil Options which highest Volume and Open Interest.
Natural gas options and Silver (Options on goods) are also liquid.
Diversification is key to success for investors as it helps in reducing risk too.
For equity and derivatives investors, it is important to atleast diversify their portfolio by 10 % in commodities which in turn can reduce impact of inflation and safeguard them during global unfavourable events…
There are numerous advantages for investors to trade in NSE commodity segment which are as follows:
Safe and resilient technology platform
Economical transaction charges.
Fungibility of collateral.
Direct market access to FPIs
Auto trade confirmation facility for FPI clients
Economical AP registration fees
And many more
We have shaped capital markets in India and now shaping commodity derivatives, Please be part of the journey and lets make India a place where we become the price setter for global commodities
