Iron ore depreciation boosts options market
Options now account for 60% of total open interest on SGX's suite of iron ore derivatives
Traders have been increasingly switching to options to hedge out the downside from the 50% decline in iron ore prices over the past year from $130 to below $65, as part of a broader surge in derivatives activity linked to the base metal from small producers facing serious cost pressures.
Iron ore prices averaged $62.62 per tonne in February, down 6.8% since January and more than 50% down over a 12
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