MCX (Multi Commodity Exchange of India Ltd) (BOM: 534091) is a commodity exchange based in Mumbai, INDIA. It is under the ownership of Ministry of Finance , Government of India. It was established in 2003 by the Government (Gov) of India. It is India’s largest commodity derivatives exchange. The average daily turnover of commodity futures contracts increased by 28% to ₹36,424 crore during FY2020-21, as against ₹32,648 crore in FY2019-20. The total turnover of commodity futures traded on the Exchange stood at ₹88.98 lakh crore in FY2020-21. MCX offers options trading in gold and futures trading in non-ferrous base metals, bullion, energy, and a number of agricultural commodities ( cardamom, cotton, mentha oil, crude palm oil and others).
What is MCX (Multi Commodity Exchange)?
Headquartered in Mumbai, the Multi Commodity Exchange was established in November 2003 and was initially regulated by FMC. in 2016, MCX was put under the regulatory purview of SEBI as FMC was merged with SEBI.
It is an online platform that allows commodity traders to do online trading, clearing and settlement of commodity future transactions, thus offering a platform for hedging.
MCX Commodities traded include
| Bullion | Gold, Gold Mini, Gold Guinea, Gold Petal, Gold Petal ( New Delhi), Gold Global, Silver, Silver Mini, Silver Micro, Silver 1000. |
| Metal | Aluminium, Copper, Lead, Nickel, Zinc. |
| Energy | Crude Oil, Natural Gas. |
| Agro Commodities | Cardamom, Cotton, Crude Palm Oil, Kapas (Cotton), Mentha Oil, Castor seed, RBD Palmolien, Black Pepper. |
Introduction to MCX (Multi Commodity Exchange)
MCX (Multi Commodity Exchange) is an exchange where commodities like gold, silver, copper, zinc, lead, crude oil, natural gas (NG) nickel, aluminium, etc are traded.
What is traded on MCX?
If you are looking for the type of commodities you can trade on the MCX (Multi Commodity Exchange) then here’s a list to help you out.
- Gold (Au)
- Silver (Ag)
- Copper (Cu)
- Zinc (Zn)
- Lead (Pb)
- Nickel (Ni)
- Aluminium (Al)
- Crude Oil
- Natural Gas (NG)
These products are chosen based on their ability to be used as hedging instruments for the dealers in those commodities.
Advantages of Multi Commodity Exchange
The main advantages of MCX are:
- Multi Commodity Exchange (MCX) provides a number of opportunities like several months contracts of derivatives and options that provide liquidity and diversification.
- It brings transparency to the table and presents everything in an organized structure which helps in making an informed choice.
Recent Terms
| Fear and Greed Index | Greed and fear index relate to an old Wall Street saying that goes, “financial markets are driven by two powerful emotions – greed and fear. |
| Cloud Mining | Cloud mining is a remote mining service that is provided by cryptocurrency mining hosts individuals interested in participating in the process in order to earn or gain some returns from the process. |
| Interim Dividend | Companies have the option of raising capital through two major asset classes namely, debt and equity. |
| Recency Bias | It is a psychological phenomenon where an individual gives greater importance to recent events as compared to what had happened before. |
| Profitability Index | Also known as the Value Investment Ratio or Profit Investment Ratio, the Profitability Index represents the relationship between the costs and the benefits of a proposed project. |
| Mark to Market, MTM | It refers to the realistic estimate of the financial situation of the market depending on the assets and liabilities present. |
Investment Related Terms
| Risk Management | In the financial world, risk management is known as the process of identification, analysis, as well as acceptance or mitigation of uncertainty in investment decisions. |
| Yield | Yield or bond yield points to the returns provided and realised by an investor on his investment over a given timeframe. |
| Break Even Analysis | Break-even analysis informs the decision maker as to how many units of a product must be sold to cover the fixed and variable costs of production. |
| Tax Planning | Tax-planning is the process of analyzing a financial plan or a situation from a tax perspective. |
| Interim Dividend | Companies have the option of raising capital through two major asset classes namely, debt and equity. |
| SGX Nifty | Investing in stocks to grow your money has become more common and popular in recent times. |
References
- “P S Reddy takes charge as MD, CEO of MCX”. Thehindubusinessline. 10 May 2019. Retrieved 17 August 2020.
- MCX Money https://www.mcxmoney.com/
- Money Control https://www.moneycontrol.com/
Frequently Asked Questions
MCX (Multi Commodity Exchange of India Ltd) (BOM: 534091) is a commodity exchange based in Mumbai, INDIA. It is under the ownership of Ministry of Finance , Government of India. It was established in 2003 by the Government (Gov) of India.
If you are looking for the type of commodities you can trade on the MCX (Multi Commodity Exchange) then here’s a list to help you out.
1. Gold
2. Silver
3. Copper
4. Zinc
5. Lead
6. Nickel
7. Aluminium
8. Crude Oil
9. Natural Gas (NG)
These products are chosen based on their ability to be used as hedging instruments for the dealers in those commodities.
Bullion – Gold, Gold Mini, Gold Guinea, Gold Petal, Gold Petal ( New Delhi), Gold Global, Silver, Silver Mini, Silver Micro, Silver 1000.
Metal – Aluminium, Copper, Lead, Nickel, Zinc.
Energy – Crude Oil, Natural Gas.
Agro Commodities – Cardamom, Cotton, Crude Palm Oil, Kapas, Mentha Oil, Castor seed, RBD Palmolien, Black Pepper.
MCX Means Multi Commodity Exchange of India Ltd. is a commodity exchange based in Mumbai, INDIA.
It was the first-ever IPO by an Indian exchange and made MCX India’s only publicly listed exchange. From 28 September 2015, MCX is being regulated by the Securities and Exchange Board of India (SEBI). Earlier MCX was regulated by the Forward Markets Commission (FMC), which got merged with the SEBI on 28 September 2015.
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