Commodity Trading

Start Trading in commodities now to diversify your portfolio.
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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.

There are various ways to invest in commodities, such as commodity futures contracts, options & exchange traded funds (ETFs).

Commodity Trading Pairs for India

5 Reasons to Invest in Commodity with 5paisa

Diversification
Diversification

Diversify & reduce your portfolio risk by investing with commodities

Trade from anywhere
Trade from anywhere

Use web or mobile platform to invest in commodities from your couch

Make fast & precise decisions
Make fast & precise decisions

Study charts, understand market and place quick orders in commodity segment in real time

Learn
Learn

Learn about commodities at 5paisa school

Low Cost
Low Cost

Execute all orders at Flat fees of ₹20/order

Get Best Value With Our Packs

Regular Account

0
₹0 per month
  • Brokerage free tradesX
  • Brokerage on equity₹20
  • Brokerage on other segments₹20
  • Net Banking Charges₹10
  • DP Transaction Charges₹12.5

Power Investor

599
₹599 per month
  • Brokerage free tradesX
  • Brokerage on equity₹10
  • Brokerage on other segments₹10
  • Net Banking Charges₹10
  • DP Transaction Charges₹12.5
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Ultra Trader

1199
₹1199 per month
  • Brokerage free trades100
  • Brokerage on equity₹0
  • Brokerage on other segments₹10
  • Net Banking Charges₹0
  • DP Transaction Charges₹0
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Learn about Commodity Trading
Learn Commodity Trading

Commodity Basics

Brief about the chapter on equity market, covering
topics on equity, averaging, understanding trading psychology.

Level: Beginner

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FAQs

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