MCX stands for the Multi Commodity Exchange of India Ltd. It is India’s largest commodities derivatives exchange, where commodities like metals, energy, bullion, and agricultural products are traded in the form of futures contracts.
📌 What MCX Does
Platform for trading commodity futures
Enables price discovery & risk management
Participants include traders, investors, hedgers, and speculators
🛢️ Major Commodity Segments on MCX
Metals
Gold
Silver
Copper
Aluminium
Zinc
Lead
Nickel
Energy
Crude Oil
Natural Gas
Others
Some agricultural & other commodity contracts
📈 How It Works (Simple)
Futures Contract: A standardized agreement to buy/sell a commodity at a future date at a pre-agreed price.
Leverage: You can trade a large value of commodity with relatively smaller margin.
Settlement: Contracts are either cash-settled or physically delivered on expiry (depending on the contract rules).
Margins: Traders must maintain initial & maintenance margins to manage risk.