Crude Oil Trading in MCX: Tips & Strategies
Crude oil is one of the most liquid and volatile commodities traded on the Multi Commodity Exchange (MCX). With global news, supply-demand dynamics, and geopolitical factors affecting prices daily, crude oil offers high-profit potential—but also comes with high risk.
In this post, we’ll guide you through practical MCX crude oil trading strategies, timing tips, and how to manage your trades effectively.
Why Trade Crude Oil on MCX?
- High volatility = strong intraday price movements
- Excellent liquidity in both Crude Oil and Crude Oil Mini contracts
- Low capital requirement due to margin trading
- Correlation with global oil markets provides news-based opportunities
Crude Oil Contract Details (MCX)
| Parameter | CRUDEOIL | CRUDEOILM (Mini) |
|---|---|---|
| Lot Size | 100 barrels | 10 barrels |
| Tick Size | ₹1 | ₹1 |
| Margin Required | ₹85,000–₹90,000 | ₹9,000–₹10,000 |
| Trading Hours | 9:00 AM – 11:30/11:55 PM | Same |
Best Time to Trade Crude Oil
- Evening session (7:00 PM – 11:30 PM): Highly active due to overlap with U.S. markets
- Around U.S. crude inventory data releases (every Wednesday)
- Avoid low-volume periods like early afternoon
Key Strategies for Crude Oil Trading
1. Breakout Trading
Look for breakouts from key support/resistance levels on 5-min or 15-min charts.
Tip: Combine with volume spike confirmation for stronger signals.
2. Moving Average Crossovers
Use 20 EMA and 50 EMA crossover on a 15-minute chart.
- Buy Signal: 20 EMA crosses above 50 EMA
- Sell Signal: 20 EMA crosses below 50 EMA
3. RSI + Price Action
- RSI between 70–80 = overbought (look for short setups)
- RSI between 20–30 = oversold (look for long setups)
Use in conjunction with support and resistance zones.
4. News-Based Trading
React to major global events such as:
- OPEC announcements
- U.S. crude inventories
- Middle East geopolitical tensions
Tip: Use tight stop-losses during news-based volatility.
Risk Management Tips
- Never risk more than 2% of capital per trade
- Always use a stop-loss
- Trade only during high-volume hours
- Track global oil prices on TradingView or Investing.com
- Avoid overtrading in volatile sessions
FAQs
Is crude oil trading risky?
Yes. High volatility means high potential for both profit and loss. Use strict risk control.
Can I trade crude oil with ₹10,000?
Yes, using Crude Oil Mini contracts, which require lower margin.
What is the best timeframe for crude oil intraday trades?
Most intraday traders use 5-minute and 15-minute charts with indicators.
Which indicators work best for crude oil?
- RSI
- MACD
- Moving Averages
- Bollinger Bands
Are crude oil prices on MCX the same as global oil prices?
MCX prices are INR-denominated but closely follow global Brent/WTI crude prices.
