What is Commodity Trading?
Commodity trading is a commodity market where buying and selling of various commodities and their derivative products take place. These commodities are primarily categorized into metal, energy, livestock and meat, and agriculture.
For investors, the mcx commodity market from MCX (Multi Commodity Exchange of India Ltd), one of India's leading national commodity exchanges, is a way to diversify their portfolios beyond traditional securities.
Commodity market timings are unpredictable as they are affected by natural and manmade calamities. There are various ways to invest in commodities, such as commodity futures contracts, options, and extended traded funds (ETFs).
Commodity Trading in India
iThe current values are delayed, open demat account for live values.
| Commodity | INR Price | Change | Change(%) |
|---|---|---|---|
| Crude oil | 5,952 | 47 | 0.8% |
| Gold | 77,096 | 403 | 0.53% |
| Natural Gas | 291 | 13.4 | 4.82% |
| Silver | 90,1 | 175 | 0.19% |
| Zinc | 28 | -0.3 | -0.11% |
Why invest in commodity market with 5paisa?
Diversification
Diversify & reduce your portfolio risk by investing with commodities
Trade from anywhere
Use web or mobile platform to invest in commodities from your couch
Make fast & precise decisions
Study charts, understand market and place quick orders in commodity segment in real time
Learn
Learn about commodities at 5paisa school
Low Cost
Execute all orders at Flat fees of ₹20/order
Regular Account
₹0
- Brokerage free tradesX
- Brokerage on equity₹20
- Brokerage on other segments₹20
- Net Banking Charges₹10
- DP Transaction Charges₹12.5
Power Investor
₹500
- Brokerage free tradesX
- Brokerage on equity₹10
- Brokerage on other segments₹10
- Net Banking Charges₹10
- DP Transaction Charges₹12.5
Ultra Trader
₹1199
- Brokerage free trades100
- Brokerage on equity₹0
- Brokerage on other segments₹10
- Net Banking Charges₹0
- DP Transaction Charges₹0
Open your commodity trading account
in 3 easy steps
Fill in details
Fill in your personal details required for account opening & select Derivatives segment while proceeding with your account opening journey
Upload documents
In addition to the below mentioned list of documents, submit your income proof that is required for trading in Derivatives segment
Start trading
Post verification, your trading account will be activated and you can start investing in commodities
List of Documents to be uploaded
-
ID Proof
PAN Card
Aadhaar Card
-
Address Proof
Aadhaar Card / Passport
-
Bank Details
Bank statement / Cheque / Passbook
-
Signature Proof
Signature on blank white paper
Learn about Commodity Trading
Commodity Basics
Brief about the chapter on equity market, covering topics on equity, averaging, understanding trading psychology.
2.1K Frequently Asked Questions
Just like any other market trading commodity market takes place where traders can buy or sell or trade in various commodities at current or future date. Similar to stock trading, investors can invest in commodities through various commodity exchanges.
MCX (Multi Commodity Exchange) offers trading in commodity derivative contracts across varied segments including bullion, industrial metals, energy and agricultural commodities, as also on indices constituted from these contracts. The clearing corporation provides collateral management and risk management services, along with clearing and settlement of trades executed on the Exchange.
Multi Commodity Exchange of India Ltd is an independent commodity exchange established in November 2003 and is based in Mumbai. It is India's largest commodity derivatives exchange.
Apart from three sectoral indices that are the Base Metal index, the Bullion index and the Energy index, there are nine single-commodity indices, which includes agricultural commodities like corn, wheat, cotton, soybean, cereals and pulses, spices and much more.
To trade in commodities through 5paisa, you would first need to activate Derivatives segment while opening your account. There are no additional charges applicable for activation if you already have a trading and Demat Account with 5paisa.
Trading holidays at MCX are different than other stock market holidays. At 5paisa we provide a list of MCX holidays at our Trading Holidays section.
Trading on the MCX platform takes place on all days of the week (except on Saturdays, Sundays and trading holidays declared by the Exchange). The commodity Market timings are as under:
Monday to Friday: 9:00 am to 11:30 pm (up to 11:55 pm on account of daylight savings typically between every November and March of the following year)
- Agri-commodities are available for futures trading up to 5:00 pm
- Other commodities such as Bullions, Metals and Energy products are available up to 11:30 pm / 11:55 pm
- International referenceable Agri-commodities are available up to 9:00 pm as notified by SEBI
Trading on the NCDEX Platform happens from Monday to Friday. Market timings segment-wise are as under:
- Monday to Friday: 9:00 am to 9:00 pm
- Crude Palm Oil, Cotton, Kapas, Soy Oil and Sugar: 9:00 am to 9:00 pm
- All Other Agri Commodities: 9:00 am to 5:00 pm