? Regular lot order
? Stop loss order
? Immediate or cancel
? Day
? End of session
? Good till cancelled
? Good till date
? Spread IOC & 2L/3L Order

Assignment means an allocation of an option contract which is exercised, to a short position in the same option contract, at the same strike price, for fulfilment of the obligation, in accordance with the procedure as may be specified from time to time.

Option on Commodity Futures contract shall have the corresponding Commodity Futures contract as the underlying.

The significant differences in Futures and Options are as under:

Futures are standardised contracts to buy or sell specified quantity of the underlying assets at a price agreed upon by the buyer and seller, on or before a specified time. Both the buyer
and seller are obligated to buy/sell the underlying asset.

In case of options the buyer enjoys the right & not the obligation, to buy or sell the underlying asset.

Futures Contracts have symmetric risk profile for both the buyer as well as the seller, whereas options have asymmetric risk profile. In case of Options, for a buyer (or holder of the option), the downside is limited to the premium (option price) he has paid while the profits may be unlimited. For a seller or writer of an option, however, the downside is unlimited while profits are limited to the premium he has received from the buyer.

The Futures contracts prices are affected mainly by the prices of the underlying asset. The prices of options are however; affected by prices of the underlying asset, time remaining
for expiry of the contract, interest rate & volatility of the underlying asset.

A Put option gives the holder (buyer/ one who is long Put), the right to sell specified quantity of the underlying asset at the strike price on expiry date in case of European option. The seller of the put option (one who is short put) however, has the obligation to buy the underlying asset at the strike price if the buyer decides to exercise his option to sell.

A call option gives the holder (buyer/ one who is long call), the right to buy specified quantity of the underlying asset at the strike price on expiration date in case of European
option. The seller (one who is short call) however, has the obligation to sell the underlying asset if the buyer of the call option decides to exercise his option to buy.

American Style option contract means an option contract which may be exercised on any day on or before the expiration day.

European Style option contract means an option contract which may be exercised on the expiration day.

The important terminologies for options contract are as under:
i. Option Contract: Option Contract is a type of contract in derivatives which gives the buyer/holder of the contract the right (but not the obligation) to buy/sell the
underlying at a predetermined price within or at end of a specified period. The option contract which gives a right to buy is called a Call Option and the option contract that gives a
right to sell is called a Put Option.

ii. Option Premium: Premium is the price which the buyer of the option pays to the seller of the option for the rights conveyed by the option contract.

iii. Strike/ Exercise Price: Exercise Price is the price per unit of trading at which the option holder has the right either to buy or sell the underlying upon exercise of the
option.

iv. Strike price interval: Strike price interval isthe gap between any two successive strike prices which the Exchange may prescribe from time to time.

v. Expiration date: The date on which the option expires is known as the Expiration Date. On the Expiration date, either the option devolves to futures underlying or it
expires worthless.

vi. Option buyer: Option buyer is a person who has bought an option contract.

vii. Option seller: Option seller is a person who has sold an option contract

viii. Exercise: Exercise means the invocation of right by the option holder

Empanelled polling participants representing the value chain of a particular commodity usually comprising of various user classes like auctioneers, traders, cold store owners, farmers, traders, millers, commission agents, wholesalers, processors, importers, exporters etc are the polling vendors.

Polling is process of gathering information from a cross-section of market players about the spot price of the commodity in the market. Spot prices are captured at the identified basis centres of a commodity, by getting price quotes from the empanelled polling participants.