MCX Commodity List: A Guide to Trading on the Multi Commodity Exchange

What are the commodities traded in MCX

The Multi Commodity Exchange (MCX) stands as India's premier commodity derivatives exchange, playing a pivotal role in the nation's commodity trading landscape. As businesses and investors seek to diversify their portfolios and hedge against market volatility, commodity trading has emerged as a crucial component of the financial markets ecosystem. MCX provides a robust platform where traders can participate in the buying and selling of various commodities, from precious metals and energy products to agricultural goods, through standardized futures contracts. Understanding the MCX commodity list is essential for both novice and experienced traders looking to capitalize on price movements in the physical commodity markets while managing their risk exposure effectively. This comprehensive guide explores the diverse range of commodities available for trading on MCX, helping you navigate the opportunities and intricacies of commodity derivatives trading in India.

Okay, Now let's explore the list of commodities that are traded on the Multi Commodity Exchange (MCX) in India. The MCX is a leading commodity exchange, and it offers a wide range of contracts across various sectors.

Understanding the Basics of MCX Trading

Before we dive into the list, it's good to understand a few basics about MCX:

• What is MCX? The Multi Commodity Exchange (MCX) is an independent commodity exchange based in India. It facilitates the trading of commodity futures contracts, allowing traders and investors to participate in the commodity market.
• What are Commodity Futures Contracts? These are agreements to buy or sell a specific quantity of a commodity at a predetermined price on a specific future date. They are standardized contracts that help manage price risk and allow for speculation.
• What are Lot Sizes? Each commodity contract is traded in specific lot sizes, which means that you cannot trade the commoditiesin the quantities you want. Each lot size is standardized by the exchange.

MCX Commodity List

The commodities traded on MCX can be broadly categorized into the following:

1. Bullion:

• Gold:
  • Gold (1 kg): This is the standard gold contract, trading in 1 kg lot sizes.
  • Gold Mini (100 gm): A smaller version of the gold contract, with a lot size of 100 grams.
  • Gold Guinea (8 gm): A smaller gold contract with a lot size of 8 grams.
  • Gold Petal (1 gm): This is a very small gold contract with a lot size of 1 gram, allowing you to trade in micro lots.
• Silver:
  • Silver (30 kg): This is the standard silver contract, with a lot size of 30 kg.
  • Silver Mini (5 kg): A smaller version of the silver contract, with a lot size of 5 kg.
  • Silver Micro (1 kg): A micro lot contract, with a lot size of 1 kg.

2. Base Metals:

• Aluminum: Traded in lots, with each lot having a specific quantity.
• Copper: Traded in standard lot sizes.
• Lead: Traded in lots, with a specified quantity for each lot.
• Nickel: Traded in lots of a standard size.
• Zinc: Traded in specified lot sizes that are defined by the exchange.

3. Energy:

• Crude Oil: Traded in barrels, with a predefined lot size.
• Natural Gas: Traded in specified lots.

4. Agri-Commodities:

• Cardamom: Traded in lots of a specified quantity.
• Cotton: Traded in bales, with a defined number of bales in each lot.
• Crude Palm Oil (CPO): Traded in lots, which are specified by the exchange.
• Mentha Oil: Traded in standard lots with a specific quantity.
• Castor Seed: Traded in standard lots with specific quantities.
• Kapas: Traded in specified bales per lot.
• Guar Seed: Traded in specific lot sizes, as defined by the exchange.
• Guar Gum: Traded in specified lots per lot.
• Jeera: Traded in standard lot sizes that are specified by the exchange.
• Turmeric: Traded in standard lots per contract, with a predefined quantity in each lot.

5. Other Commodities

• Rubber: Traded in defined quantities for each contract.

Important Notes:

• Lot Sizes: Lot sizes vary for each commodity and each contract, and it is essential to know this before you start trading. Always check the MCX website or your broker's platform for the most up-to-date lot size information, as lot sizes and quantities may change.
• Contract Specifications: Each contract has specific details about the delivery dates, settlement process, and quality standards, which are specified in the contract details.
• Trading Hours: The trading hours for different commodities can vary, so it is important to check the timings of each individual commodity before beginning to trade it.
• Contract Expiry: MCX contracts expire on a fixed monthly schedule, and you must close your positions on or before the date of expiry.
• Margin Requirements: Trading in MCX involves margin requirements, which is the amount of capital you need to deposit to take a position. The margin requirements can change from time to time based on the market conditions.

How to Find the Most Updated List

The list of commodities traded on MCX can be changed by the exchange, and it's best to refer to the official sources for the most up-to-date information. Here's how you can do that:

• Our MCX Commodity Trading lot size page
• MCX Website: The official MCX website has a section that provides an updated list of all the commodities that are traded, and you can also download the complete contract specifications for each of the commodities from their website.
• Broker's Platform: Most stock brokers will list the commodities that are available for trading on their platform. You can usually check the details of the commodities and their contract specifications from the broker's platform as well.
• Exchange Circulars: Keep an eye on exchange circulars to stay informed of any changes in commodities, specifications, and lot sizes.
• Financial News Websites: Major financial websites also usually provide a list of all the commodities that are actively traded on the MCX.

Conclusion

The MCX provides a diverse range of commodities for trading, and this list provides you with an overall picture of the different commodities that are available for trading. By understanding the different contract specifications, lot sizes, and other details, you will be better able to trade in these markets effectively and maximize your profitability. Remember always to refer to the official sources to make sure you have the most up-to-date information.

Disclaimer: Please note that the commodities listed and the lot sizes provided can change, and therefore are only intended to be a starting point. Always refer to the official sources for the most up-to-date information and for the latest contract specifications.