NMCE has launched rubber mini contract to attract small producers, traders and hedgers’ participation.
The main feature of the contract is the lot size for trading and delivery which is 100 kg and that would be beneficial for small and marginal producers for hedging their produce.
The delivery will take place only in case of matching intentions between the buyers and the sellers. The rest of the open positions will be closed through cash settlement.
The settlement price would be the same as that of the main rubber contract which is settled through compulsory physical delivery. This would enable small farmers and traders to hedge their exposures without getting into hassles of compulsory delivery, a statement issued here said.
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