Markets

Options contracts are instruments that give the holder of the instrument the right, not the obligation, to buy or sell the underlying asset at a predetermined price. There are two main types of options - a "call" option or a "put" option:

A call option gives the owner the right to buy the underlying asset at a given price (also called "Strike price"), whereas the seller has only the obligation and not the right (for example; you would buy a call option in case you believe the underlying futures price will move higher. Let us say that you expect steel futures to move higher, you will want to buy a steel call option).
A put option gives the owner the right to sell the underlying asset at a given price and the seller has the obligation to buy (for example; you would buy a put option if you believe the underlying futures price will move lower. For example, if you expect silver futures to move lower, you will want to buy a silver put option).

DGCX offers a standardised US Dollar denominated Option contract on Gold Futures and Option contract on Indian Rupee Futures as of September 26, 2011.contract on Indian Rupee Futures as of September 26, 2011.