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MCX Commodity Basics
How commodity futures work on the Multi Commodity Exchange — the contracts, how prices are quoted, how a ₹1 move turns into profit or loss, and what drives gold, silver, crude oil and natural gas.
What is a commodity future?
A commodity future is a contract to buy or sell a fixed quantity of a commodity at a set price on a future date. On the MCX (Multi Commodity Exchange of India) you trade these contracts on metals and energy without handling the physical goods — positions are typically closed or settled before delivery.
Just like index futures, you can go long (buy) if you expect prices to rise, or short (sell) if you expect them to fall.
The contracts you can trade
On SigmaFX you trade four MCX commodities. Each one has its own quote unit — the quantity the price on screen refers to — and its own lot size.
| Commodity | Price quoted per | Typical lot (illustrative) | ₹1 move per lot |
|---|---|---|---|
| Gold | 10 grams | 1 kg (Gold Mini: 100 g) | ₹100 (Mini: ₹10) |
| Silver | 1 kg | 30 kg | ₹30 |
| Crude Oil | 1 barrel | 100 barrels | ₹100 |
| Natural Gas | 1 mmBtu | 1,250 mmBtu | ₹1,250 |
Why this matters: the “₹1 move per lot” is your multiplier. A ₹50 move in crude oil is ₹5,000 on one lot, while a ₹50 move in natural gas would be ₹62,500. Always check the contract specification on the platform before you trade.
Calculating profit and loss
Profit or loss = price change × multiplier, where the multiplier is how many quote units are in one lot.
Buying one lot of CRUDEOIL
- Crude oil trades at ₹6,284 per barrel. Lot = 100 barrels.
- You buy one lot. In the evening session the price rises to ₹6,334 — a ₹50 move.
- Profit = ₹50 × 100 = ₹5,000 (before statutory charges).
A ₹50 fall would cost the same ₹5,000 — energy prices can move this much within minutes around major news.
Gold quoted per 10 g
- Gold trades at ₹72,450 per 10 g. A 1 kg lot contains 100 × 10 g.
- If gold rises by ₹300 per 10 g, the 1 kg lot gains ₹300 × 100 = ₹30,000.
- On a 100 g Gold Mini lot, the same move is ₹300 × 10 = ₹3,000.
Smaller contract variants let you take the same view with a fraction of the exposure.
Trading hours
MCX metals and energy trade in one long session on weekdays, from 9:00 AM until 11:30 PM IST, extended to around 11:55 PM when the US is on winter (standard) time. That evening window overlaps with US and European markets — when much of the global price action happens.
Tip: many large moves in crude oil and natural gas happen in the Indian evening, when US inventory and economic data are released.
What moves commodity prices
Gold & silver
- International gold and silver prices.
- The US dollar vs Indian rupee rate — a weaker rupee lifts Indian prices.
- Interest rate expectations and inflation data.
- Geopolitical risk and safe-haven demand.
- Import duties and festive / wedding season demand in India.
Crude oil
- Global benchmarks (WTI and Brent).
- OPEC+ production decisions.
- Weekly US crude inventory reports.
- Global growth outlook and geopolitical supply risks.
- USD/INR movements.
Natural gas
- Weather — heating and cooling demand.
- Weekly US natural gas storage reports.
- LNG export flows and production levels.
Expiry, rollover and charges
Each MCX contract has an expiry month. Close or roll your position before expiry if you do not intend to take part in settlement. Rolling over means closing the near-month contract and opening the next one.
SigmaFX charges zero brokerage on MCX trades. You pay only statutory charges — CTT (Commodities Transaction Tax) on the sell side for non-agricultural futures, the exchange transaction charge, SEBI fee, stamp duty and GST — itemised on screen before you confirm.
Common mistakes to avoid
Natural gas and gold carry large multipliers — a small price move can mean a big rupee swing.
Inventory reports and central-bank decisions can move prices sharply in seconds.
Know the expiry date of your contract and roll or close in time.
MCX prices reflect USD/INR as well as global prices — both can move against you.
The evening session is long. Use stop-losses instead of watching the screen until close.
Key takeaways
- MCX futures let you trade gold, silver, crude oil and natural gas without handling the physical goods.
- Know each contract’s quote unit and multiplier — P&L = price change × multiplier.
- The session runs late into the night, overlapping with US and European markets.
- Global prices, the rupee, inventories and weather drive commodity moves.
- On SigmaFX brokerage is ₹0; only statutory charges apply, shown before you confirm.
Glossary
- MCX
- Multi Commodity Exchange of India.
- Quote unit
- The quantity the displayed price refers to, e.g. ₹ per 10 g for gold.
- Multiplier
- Rupee change in a lot for a ₹1 change in price.
- mmBtu
- Million British thermal units — the unit for natural gas.
- Near month
- The contract with the closest expiry, usually the most liquid.
- Rollover
- Closing the near-month contract and opening the next month.
- CTT
- Commodities Transaction Tax.
- Inventory report
- Weekly data on stored crude oil or natural gas that often moves prices.
Check your understanding
Tap an answer to see whether you got it right.
Crude oil has a lot of 100 barrels. Price moves from ₹6,300 to ₹6,260. What is the loss on one long lot?
Loss = ₹40 × 100 barrels = ₹4,000, before statutory charges.
Gold on MCX is quoted per…
MCX gold is quoted in ₹ per 10 grams; silver is quoted per kilogram.
Which of these is a major driver of natural gas prices?
Heating and cooling demand (weather) and weekly storage reports are key drivers of natural gas.
Keep learning
All examples on this page are illustrative and use round numbers. Lot sizes, margins, charges and session timings are set by the exchanges and regulators and change from time to time — always check the live contract details on the platform. This guide is educational and is not investment advice.