MCX Multi Commodity Exchange

The Multi Commodity Exchange of India Ltd (MCX) is India’s largest commodities derivatives exchange, providing a platform for buyers and sellers to trade in various commodities. Established in 2003 and headquartered in Mumbai, MCX operates as an online marketplace for commodity trading.

Key Features: Facilitates trading in commodity derivatives, including futures and options. Trades cover soft commodities (e.g., agricultural products like wheat, cotton, and spices) and hard commodities (e.g., metals like gold, silver, copper, and crude oil). Acts as a regulated exchange, ensuring transparency, efficiency, and risk management. Enables price discovery and risk hedging for producers, consumers, and investors.

Example: A farmer can hedge against falling wheat prices by selling wheat futures on MCX. An investor can trade gold futures to profit from anticipated price movements without owning physical gold.