MCX Guider - A Beginner’s Guide to the Commodity Market
Learn how to trade in commodities with confidence
What is MCX?
MCX (Multi Commodity Exchange) is India’s largest commodity derivatives exchange. It allows you to trade in commodities like gold, silver, crude oil, and more. Beginners can use it to gain exposure to the commodity market in a regulated environment.
Types of Commodities
Commodities are classified as Metals (like Gold, Silver), Energy (like Crude Oil, Natural Gas), and Agro Products (like Cotton, Mentha Oil). Each type responds to different global and local factors.
How to Start Trading?
Open a commodity trading account with a registered broker, complete KYC, add funds, and start trading on the MCX platform using their tools and charts. Start with virtual demo accounts if you're a complete beginner.
Risks in Commodity Trading
Commodities are volatile. Price changes due to global events, weather, and politics. Beginners must use stop-loss, risk only what they can afford to lose, and avoid emotional trading.
Important Tips for Beginners
- Start with one or two commodities only
- Use technical and fundamental analysis
- Never trade based on emotions
- Keep a trading journal
- Learn continuously
Best Time to Trade on MCX
MCX is open from 9 AM to 11:30 PM. The best time depends on the commodity. For example, energy commodities like crude oil are most active in the evening when U.S. markets open.
Learning Resources
MCX itself provides free resources. Use YouTube tutorials, courses, and broker platforms like Zerodha Varsity. Always verify the source before following advice.
