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.

It is the rate at which the futures contract is settled on the expiry date. Usually it is the average of the spot prices of the last few trading days (as specified in the contract specification) before the contract maturity.

Spot market is the market in which, commodities are physically bought or sold usually on a negotiable basis, and normally result in immediate delivery.

No

Yes.
Members can cancel the orders in order cancellation session (special session) before normal trading hours. Timing for special session is from 8.45 AM to 8.59 AM, during Monday’s to Friday’s. The special session will allow Members to cancel their pending orders.