MCX

MCX (Multi Commodity Exchange of India Limited) is India's largest and most liquid commodity derivatives exchange, headquartered in Mumbai. Established in 2003, MCX is regulated by SEBI (commodity derivative regulation was transferred from the Forward Markets Commission to SEBI in 2015).

MCX offers futures and options contracts on a range of commodities across four segments: bullion (gold, silver, gold mini, gold petal), energy (crude oil, natural gas), base metals (copper, zinc, aluminium, lead, nickel), and agricultural commodities (though agri commodity derivatives have seen regulatory restrictions). The most actively traded contracts are gold futures, crude oil futures, and silver futures.

Trading on MCX operates from 9:00 AM to 11:30 PM (or 11:55 PM during US daylight saving time), allowing Indian traders to react to global commodity price movements in real time. This extended trading window is unique compared to equity markets that close at 3:30 PM. Gold on MCX closely tracks international gold prices (COMEX) with adjustments for the INR/USD exchange rate and import duties.

The margin requirements for MCX contracts are set by the exchange. For example, a gold futures contract (1 kg, value approximately ₹60,00,000 at ₹6,000/gram) might require ₹3,50,000–4,50,000 in margin. Gold mini (100 grams) and gold petal (1 gram) contracts allow smaller investors to participate with proportionally lower margins.

MCX competes with the NCDEX (focused on agricultural commodities) and the NSE/BSE commodity segments. For investors, commodity exposure through MCX can serve as a portfolio diversifier and Inflation hedge, as commodity prices often rise when equity markets face headwinds from rising input costs.