Definition
MCX (Multi Commodity Exchange)
MCX is India's largest commodity derivatives exchange, where futures and options on metals, energy and bullion like gold, silver and crude oil are traded.
The MCX dominates Indian commodity trading, especially in gold, silver, crude oil and base metals like copper, zinc and aluminium. Contracts are standardised with fixed lot sizes and expiries, regulated by SEBI.
MCX prices for bullion and energy closely track global benchmarks adjusted for the rupee and import duties, making it the reference for Indian jewellers, refiners and hedgers. It offers both cash-settled and physically deliverable contracts depending on the commodity.
Related terms
- NCDEX (National Commodity Exchange)NCDEX is India's leading agricultural commodity derivatives exchange, where futures on farm products like guar, soybean, chana and cotton are traded.
- Gold/Silver Futures (MCX)Gold and silver futures on MCX are exchange-traded contracts to buy or sell a fixed quantity of bullion at a future date, used by jewellers, investors and traders to hedge or speculate.
- Crude Oil FuturesCrude oil futures are contracts to buy or sell oil at a set price for future delivery, with MCX crude tracking the global WTI benchmark in rupee terms.
- MCX Lot SizeThe MCX lot size is the standardised minimum quantity of a commodity per futures contract, which determines the contract value and margin required to trade.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.