Commodity Market:-

A commodity market is a virtual marketplace for buying, selling and trading raw or primary products. It’s mainly divided into two parts one is MCX (multi-commodity exchange) and the second one is NCDEX (national commodity and derivatives exchange. MCX market is further divided into following segments A commodity futures contract is an agreement to buy or sell a specific amount of a commodity at a fixed date in the future at a predetermined price. This contract specifies further details, like the quality of the commodity and the delivery location. An investor could take a long position (where he buys a contract) or a short position (where he sells it). If the investor expects the price of a commodity to rise, he takes a long position. If he expects the price to fall, he opts for the short position

Bullion – In bullion segment Gold & Silver take place

Base Metal – In Base Metal Zinc, Lead, Aluminum, Copper, Nickel etc Included

Energy – In Energy Crude Oil, Natural Gas, Mentha Oil take place

And NCDEX market is extremely trusted for the buying and selling of Agri-based products like Chana, Jeera, oil and oil seeds, cereals, etc. ... National Commodity and Derivates Exchange Limited or NCDEX is an online multi ware exchanging trade


India has six national commodity exchanges namely, Multi Commodity Exchange (MCX), National Commodity and Derivatives Exchange (NCDEX), National Multi-Commodity Exchange (NMCE) and Indian Commodity Exchange (ICEX), Universal Commodity Exchange (UCX) and the ACE Derivatives exchange (ACE).

Market Time:-

The timings for commodity trading are from 10:00 am to 11:55 pm for all the non agri commodities. But the timings for the agricultural commodities are from 10:00 am to 5:00 pm.

Regulatory Bodies:-

The regulatory body is Forward Markets Commission (FMC) which was set up in 1953. As of September 2015 FMC was merged with the Securities and Exchange Board of India, SEBI. After this merger, Sebi has been ordered to exit many commodity exchanges.

Author's Bio: 

I'm Aneet Trifid, I am sharing an article about an overview of Initial Commodity Market. we provide online mcx trading tips