Multi-Commodity Exchange of India (MCX) is a leading commodity derivatives exchange based in India. Established in November 2003, MCX operates under the regulatory framework of the Securities and Exchange Board of India (SEBI).
MCX provides a platform for trading in a wide range of commodities, including precious metals, base metals, energy resources, and agricultural products.
How MCX Works
MCX works in the same way as the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), but with a focus on commodity derivatives trading.
MCX provides a platform for market participants to trade in futures and options contracts of various commodities, including precious metals, base metals, energy resources, and agricultural products.
Similar to BSE and NSE, MCX operates through an electronic trading system that enables transparent price discovery and efficient order execution. It also employs a clearing and settlement process to ensure the timely completion of transactions.
MCX, like BSE and NSE, follows regulatory guidelines and implements risk management measures to maintain the integrity and stability of the market.
You can trade in the MCX commodity market on all weekdays, except Saturdays, Sundays, and declared market holidays. You can also check out the list of MCX holidays 2023.
MCX Commodities List
The MCX commodity list is divided into two primary categories:
- Non-Agri Commodities
- Agri Commodities
#1. Non-Agri Commodities
Non-agri commodities consist of a wide range of metals and energy resources. These commodities are crucial drivers of industrial growth and economic development.
Here are some of the non-agri commodities available for trading on MCX:
A. Base Metal
Base metals are essential components in various industries, including construction, manufacturing, and infrastructure. These metals offer traders the opportunity to tap into the pulse of economic activities and capitalize on market trends.
The symbol for the base metal category on MCX is ‘MCX Metldex.’
The MCX commodity list includes base metals such as –
- Aluminium mini
- Lead mini
- Zinc mini
Bullion refers to precious metals that are traded primarily for investment purposes. Gold and silver are the prominent players in the bullion market.
Bullion commodities serve as a store of value and provide a hedge against inflation and economic uncertainties. The symbol for the bullion category on MCX is ‘MCX Bulldex.’
The MCX commodity list offers several options for trading in bullion –
- Gold mini
- Gold guinea
- Gold petal
- Silver mini
- Silver micro
Energy commodities are vital resources that power economies and industries. These commodities are influenced by geopolitical factors, supply and demand dynamics, and global energy trends.
Trading in energy commodities allows you to participate in the ever-evolving energy market. The symbol for the energy category on MCX is ‘MCX Enrgdex.’
The MCX commodity list includes energy commodities such as
- Crude oil
- Crude oil mini
- Natural gas
- Natural gas mini
You can go through the best strategies to commodity trade in Natural Gas for profit.
#2. Agri Commodities
Agricultural commodities hold a significant place in the MCX commodity list, catering to traders interested in the agricultural sector. These commodities are influenced by factors such as weather conditions, government policies, and global demand.
Here are agri commodities available for trading on MCX:
- Cotton – Cotton is a versatile agricultural commodity widely used in the textile industry. India is one of the largest producers and exporters of cotton, making it an attractive commodity for you. Cotton futures contracts allow you to speculate on the price movements of this agricultural staple
- Crude Palm Oil – Crude palm oil is a key ingredient in various industries, including food, cosmetics, and biofuel. It is derived from the oil palm fruit and is known for its high yield and versatility. MCX provides trading opportunities for crude palm oil, allowing you to capitalize on its market dynamics.
- Kapas (Raw Cotton) – Kapas is an essential commodity in the textile industry. MCX offers trading in kapas futures, enabling you to participate in the cotton market. As one of the largest producers of cotton in the world, India’s cotton industry holds immense potential for traders and investors.
- Mentha Oil – Mentha oil is an aromatic commodity derived from the extraction of mentha leaves. It is primarily used in the pharmaceutical and fragrance industries. MCX facilitates trading in mentha oil, providing an avenue for traders to engage in this unique market.
MCX Trading Timings 2023
- MCX Timings: Monday to Friday 9:00 AM to 11:30 PM /11:55 PM
- Morning Session Timing: 9:00 AM – 5:00 PM
- Evening Session Timing: 5:00 PM – 11:30 PM /11:55 PM
The trading timings for the evening session are revised twice a year to comply with the US daylight saving.
- In summer, the closing time is 11:30 PM IST
- In winter it’s 11:55 PM IST
|Trading Time Hour
|Internationally Referenceable Non-Agri Commodities such as Bullions, Metals, and Energy products
|9:00 AM to 11:30 PM (March to November)
9:00 AM to 11:55 PM (November to March)
|Internationally Referenceable Agri Commodities
|09.00 AM to 09.00 PM / 09.30 PM
|All Other Agri Commodities
|09:00 AM to 05:00 PM
You may also like to read a step-by-step guide on how to buy MCX commodities in Zerodha.
Benefits of Trading in MCX
#1. Portfolio Diversification – MCX offers a diverse range of commodities across various sectors, allowing you to diversify your portfolios. By trading in different commodities, you can spread your risk and potentially capitalize on multiple market opportunities.
#2. Hedging – Commodity markets provide an effective hedging mechanism. By participating in MCX commodity trading, you can hedge against price fluctuations in various sectors. For example, if you are involved in the manufacturing industry and rely on base metals, you can use MCX futures contracts to hedge against potential price volatility.
#3. Low Volatility – MCX commodities often exhibit lower volatility compared to other financial markets. This can be advantageous for you seeking a more stable trading environment. Lower volatility enables traders to make more accurate predictions and reduces the risk of sudden price fluctuations that can lead to significant losses.
Factors Influencing MCX Commodity Prices
#1. Global Supply and Demand Dynamics: The relationship between supply and demand forms the backbone of commodity price fluctuations. Any changes in global supply or demand, whether due to geopolitical factors, economic shifts, or unforeseen events, can significantly impact commodity prices.
#2. Geopolitical Events and Conflicts: Geopolitical events and conflicts have the power to send shockwaves through the commodity market. Political tensions, trade disputes, or disruptions in supply chains can lead to rapid price fluctuations, making it crucial for traders to stay informed and adapt swiftly.
#3. Weather Patterns and Natural Disasters: Nature plays a significant role in shaping commodity prices, especially when it comes to agricultural commodities. Droughts, floods, hurricanes, and other natural disasters can devastate crops, leading to supply shortages and subsequent price increases.
Similarly, favorable weather conditions can result in bumper harvests, impacting prices in the opposite direction.
#4. Economic Indicators and Market Sentiment: Commodity prices are also influenced by broader economic indicators and market sentiment. Factors such as inflation rates, interest rates, GDP growth, and investor sentiment can sway commodity prices.
For instance, during times of economic uncertainty, investors often turn to commodities as a hedge against inflation and market volatility, leading to increased demand and potentially higher prices.
Generally, energy commodities are considered the most volatile, while agriculture tends to relatively lower price fluctuations
From September 28, 2015, MCX is regulated by the Securities and Exchange Board of India (SEBI).
Earlier, MCX was regulated by the Forward Markets Commission (FMC), which merged with SEBI on 28th September 2015.
Yes, Zerodha Commodities Pvt. Ltd., a member of MCX (Registration No. 46025) and having SEBI Registration Number INZ000038238, enables commodity trading on your account.
The most common commodities traded in India include gold, crude oil, natural gas, copper, zinc, cotton, and mentha oil.
There are 4 types of commodities which can be traded in a commodity trading market.
- Base Metal: Aluminium, Alumini, Copper, Lead, Lead mini, Nickel, Zinc, Zinc mini.
- Bullion: Gold, Gold mini, Gold guinea, Gold petal, Silver, Silver mini, Silver micro.
- Energy: Crude oil, Crude mini, Natural gas, Natural gas mini.
- Agri Commodities – Cotton, Crude palm oil, Kapas, Mentha oil.
MCX stands for Multi Commodity Exchange, which is a leading commodity derivatives exchange in India.