Let’s talk about MCX trading in India.
Well, I will tackle this topic in the simplest terms possible, breaking it down to the simplest possible manner that even a lay man can understand. It will update you on what is trending in the corridors of commodity exchange.
What is MCX? MCX is the abbreviation of Multi Commodity of India Ltd. It is an autonomous commodity exchange platform based in Mumbai. Having been established in 2003; MCX has grown to bag multiple awards locally and internationally. Just last year, it was ranked number seven globally in regards to futures traded. MCX is regulated by Securities and Exchange Board of India (SEBI) What is a commodity market? A commodity market facilitates the trading of various commodities.
It can either be a sport market or derivatives market. The difference is spot market commodities are bought and sold for immediate delivery while a derivatives market numerous financial instruments based on commodities are traded. MCX offers the opportunity for futures trading in bullion, energy, nonferrous metals and various agricultural products like crude palm oil, cotton and mentha oil Just recently the Indian market has opened doors for the retailers to take part through commodity derivatives. Commodities are a better option for those willing to diversify their portfolios beyond shares, bonds and real estate. Launch of Gold Options To add on the opportunities in MXC, the platform will launch the country’s first gold options in September. This will allow even middle level and smaller players in the bullion industry. MCX Managing director Murgank Paranjape was quoted saying that they have already conducted mock drill and will launch the options before the end of September. India buys a lot of Gold importing more than 800 tons a year The metal is widely from religious donations, wedding gifts and investment. MCX’s total income fell by 7.1% in June quarter, gold options and hedge funds are expected to increase MCX turnover in the coming fiscal years.