Stock Market · Currency, Commodity & GSec

MCX

MCX (Multi Commodity Exchange of India) is India's premier commodity exchange. Founded in 2003, it's where you trade gold, silver, crude oil, natural gas, copper, aluminium, zinc, and agricultural commodities via futures contracts.

Key commodities on MCX

• Precious metals: Gold (1 kg lot), Gold Mini (100g), Silver (30 kg), Silver Mini (5 kg)
• Energy: Crude oil (100 barrels), Natural gas (1250 mmBtu)
• Base metals: Copper (2.5 MT), Aluminium (5 MT), Zinc (5 MT)

How MCX differs from NSE/BSE

• Regulated by SEBI (since 2015), earlier under FMC
• Physical delivery option for most contracts at expiry
• Trading hours extended: 9 AM to 11:30 PM (evening session tracks international markets)

> The evening session is crucial. Gold and crude prices in India respond to US trading hours. MCX's night session allows Indian traders to hedge when US markets move.

MCX contract cycle

Most contracts: near-month, next-month, far-month available.

Gold has contracts up to 6 months forward.

Expiry: 5th day of the delivery month (for Gold).

Who trades MCX?

• Jewellers: hedge gold price risk
• Refineries: hedge crude price risk
• Importers: hedge copper/aluminium purchase prices
• Retail traders: directional speculation on commodity prices

Tax: commodity futures = non-speculative business income (same as F&O).

Takeaway. MCX is India's commodity exchange for gold, silver, crude oil, and metals. Trades until 11:30 PM (tracks US markets). Physical delivery possible. Tax treatment same as F&O. Non-speculative business income at slab rate.