Top Commodities Traded on MCX India
MCX (Multi Commodity Exchange of India) is the leading commodity derivatives exchange in India, offering futures contracts in a wide range of commodities. Some of these instruments see significantly higher trading volumes due to their market relevance, price volatility, and investor interest.
This article highlights the top traded commodities on MCX, providing insights into why they attract traders and how they function in the Indian market.
1. Gold
Gold is the most popular commodity traded on MCX. It acts as a hedge against inflation and economic uncertainty. Traders prefer Gold futures because of their:
- High liquidity
- Wide availability of lot sizes (Gold, Gold Mini, Gold Guinea, Gold Petal)
- Strong global price influence
Popular contract: Gold Mini (100 grams)
Why trade: High value, safe-haven asset, strong price trends
2. Crude Oil
Crude Oil is one of the most volatile commodities on MCX, offering lucrative opportunities for short-term traders. Prices are affected by:
- Global supply-demand shifts
- OPEC decisions
- Geopolitical events
Popular contract: Crude Oil Futures (100 barrels)
Why trade: High daily movement, suitable for intraday strategies
3. Silver
Silver futures on MCX attract both retail and institutional traders. With its industrial and investment demand, silver offers dual benefits.
Popular contracts: Silver (30 kg), Silver Mini (5 kg), Silver Micro (1 kg)
Why trade: Moderate volatility, multiple contract sizes
4. Copper
Copper is a leading industrial metal that reflects economic growth trends. Its steady trading volumes make it attractive for positional trades.
Contract size: 1,000 kg
Why trade: Stable price patterns, economic indicator
5. Natural Gas
Natural Gas is known for its extreme volatility, driven by seasonal and weather-related factors. Traders seeking quick price action often prefer it.
Contract size: 1,250 MMBtu
Why trade: High momentum, strong reaction to global energy trends
6. Zinc
Zinc is one of the most liquid base metals on MCX, widely used in galvanizing and construction. Its relatively stable trend makes it a preferred choice for medium-term traders.
Contract size: 5,000 kg
Why trade: Steady demand, high liquidity
7. Aluminium
Aluminium is actively traded due to its use in construction, transport, and packaging. It has a relatively lower margin requirement compared to other metals.
Contract size: 5,000 kg
Why trade: Low entry cost, good for beginners
8. Nickel
Nickel is used in stainless steel and battery production. Its price is influenced by global mining activities and electric vehicle (EV) demand.
Contract size: 250 kg
Why trade: Moderate volatility, global demand-supply sensitive
9. Lead
Lead contracts are less volatile but have consistent demand from battery and power industries.
Contract size: 5,000 kg
Why trade: Predictable movement, suitable for range-bound strategies
10. Cotton
Cotton is the most traded agri-commodity on MCX. Prices are influenced by monsoon, global cotton production, and textile industry demand.
Contract size: 25 bales (170 kg each)
Why trade: Seasonal patterns, ideal for fundamental analysis
FAQs
Which commodity is best for beginners on MCX?
Gold Mini and Silver Micro are popular among beginners due to smaller lot sizes and lower margin requirements.
Can I trade all these commodities through the same broker?
Yes, all major brokers offer access to all MCX-listed commodities through a single commodity trading account.
Are commodity prices on MCX influenced by international markets?
Yes, global prices play a major role in determining MCX commodity prices, especially for bullion and energy products.
Which commodity has the highest volume on MCX?
Gold and Crude Oil consistently record the highest trading volumes.
Do all commodities have intraday trading opportunities?
Most liquid commodities like Crude Oil, Gold, and Silver offer strong intraday price movements suitable for active traders.
