The NSE (National Stock Exchange of India) has got approval from the SEBI (Securities and Exchange Board of India) to launch a large-size copper commodity futures contract with a trading unit of 25 tonnes.
In the worldwide commodity markets, the 25-tonne copper futures contract is one of the most noteworthy traded contracts and is considered as the worldwide benchmark, according to a press release.
The NSE expects to give an onshore supporting stage to huge Indian corporates, refiners and different clients in the value chain, with the introduction of a comparative extensive size futures contract.
NSE is devoted to developing the Indian commodity markets by giving helpful and cost-proficient “onshore hedging products,” said Vikram Limaye, Managing Director and CEO, NSE.
There is a possibility for the new copper commodity futures contract to extensively modify the commodities setting in India, Limaye said.
NSE is effectively investigating different alternatives to advance this remarkable offering with the end goal to draw in market participants and fabricate liquidity and will announce the launch date at the right time, said the main stock trade of the nation, said the leading stock exchange of the country, according to The Times of India.
Investors usually utilize the copper futures market to use their capital against price changes to generate returns on their investments. A copper futures contract signifies 25,000 pounds of copper, according to Cannon Trading.
Trading in copper futures requires giving careful consideration to market fluctuations or changes and staying active in developing markets. Since copper moves within the commodity market at high instability or volatility ignoring a situation for even a brief period of the day can be very expensive.
The large-size copper commodity futures contract offering will be settled by means of physical delivery using world-class infrastructure and worldwide accepted procedures, said NSE, as reported on Moneycontrol.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]