Exploring the dynamic landscape of commodities
A commodity is any tangible good, product or material that can be bought and sold. According to the Securities Contracts (Regulation) Act, 1956, "goods" means every kind of movable property other than actionable claims, money and securities. Grains, Gold, Crude Oil, Copper and Natural Gas are some examples of commodities.
A derivative is a financial instrument whose value is based on an underlying asset such as equities, currency or commodities. The most common derivative instruments are forwards, futures, options and swaps.
Futures Trading — buying or selling a commodity at a predetermined price and date in the future. Futures contracts are standardised, traded on exchanges, and require margin deposits.
Options Trading — gives the buyer the right, but not the obligation, to buy or sell a commodity at a specific price and date; used for hedging or speculation.
- Access MCX commodity contracts
- Bullion, base metals & energy
- Live prices & charts
- Guidance from your dedicated RM

Understanding Commodity in detail
How commodity trading works
On the Multi Commodity Exchange (MCX) you trade standardised futures and options on commodities such as gold, silver, crude oil, natural gas and base metals. Each contract has a fixed lot size, an expiry date and a margin requirement; most retail participants square off or roll over positions before expiry.
Why add commodities
Commodities often move differently from equities, which can add diversification to a portfolio. Bullion is widely used as a hedge against inflation, and businesses use commodity derivatives to manage input-cost risk.
The main categories
Select agri commodities are also available.
What moves commodity prices
Global demand and supply, the US dollar, geopolitics, weather and inventory levels all play a role. Commodities can be volatile, so keep position sizes sensible and use risk controls.
Understanding Commodity
Bullion
Gold & silver — popular hedges against inflation and portfolio diversifiers.
Energy
Crude oil & natural gas — sensitive to global supply, demand and geopolitics.
Base Metals
Copper, zinc, lead and aluminium — track industrial and construction demand.
Why Trade Commodities with PCJ
MCX Access
Trade India’s leading commodity exchange.
Diversification
A different dimension beyond equities.
Hedging
Manage price risk on real exposures.
Tools & Charts
Advanced tools and historical data.
Tools You Get With PCJ
Strategy Builder
Build option strategies with pay-off charts & Greeks.
Market Depth
Live bid/ask, 52-week range, volume & OI.
Basket & SIP
Order multiple stocks or set SIPs in one go.
Smart Alerts
Price alerts so you never miss a move.
Charts & Data
30 years of history, ratios & indicators.
Safe & Secure
NSDL demat, OTP-based pledges & alerts.
Futures vs Options (Commodity)
Futures
Options
Begin in Three Simple Steps
Open your account
Complete a 100% online, paperless Demat & Trading account in about 10 minutes.
Meet your RM
Get a dedicated Relationship Manager for guidance and service support.
Start with Commodities
Choose a commodity contract, review the data, and place your order.
Commodity — Frequently Asked Questions
Bullion (gold, silver), base metals (copper, etc.) and energy (crude oil, natural gas) on the MCX, among others.
No — commodity trading is available within your PCJ trading account, subject to segment activation.
Most retail contracts are cash-settled or squared off before expiry; margins apply as per exchange norms.
MCX offers extended hours, typically into the evening, which is useful as global markets move. Check current session timings in the app.
Most retail participants square off or roll over before expiry; some contracts are deliverable. Always check the contract specification first.
Commodity futures require exchange-mandated margins that vary by commodity and prevailing volatility.
Futures and options are contracts whose value depends on an underlying share or index. A future is an agreement to buy or sell at a fixed price on a future date. An option gives you the right — but not the obligation — to do so, for a price called the premium. They are tools for hedging and trading, and they carry leverage, which magnifies both profit and loss.
Very. SEBI's own study found that about nine out of ten individual F&O traders lost money, with sizeable average losses. Leverage means a small market move against you can wipe out a large part of your capital. If you still want to trade derivatives, start small, learn payoff structures, always use stop losses, and never trade with money you cannot afford to lose.
Margin is the deposit the exchange requires you to keep with the broker to take a leveraged position. It ensures you can honour your obligations if the market moves against you. Margins change with volatility, and if your losses eat into the margin, you get a margin call asking for more funds — failing which the position may be squared off.
SEBI requires brokers to collect income proof before activating derivative segments because F&O involves leverage and is suitable only for investors who can bear the risk. A recent salary slip, six months' bank statement, ITR acknowledgement or demat holdings statement usually works.
Muhurat trading is a special one-hour trading session that exchanges hold on Diwali evening, considered an auspicious time to invest. The exact timing is announced by NSE and BSE each year. It is a symbolic session — liquidity is thinner than normal hours, so trade thoughtfully.
There is no minimum. You can buy a single share, and many good companies trade at modest prices. If you prefer mutual funds, SIPs start from as little as ₹500 a month. What matters is starting early and staying regular — the amount can grow with your confidence.
In delivery trading you buy shares and hold them — they are credited to your demat account and remain yours until you sell. In intraday trading you buy and sell the same day, closing your position before the market shuts. Delivery builds long-term wealth; intraday is short-term trading that needs skill, discipline and strict stop losses.
Normal equity market hours on NSE and BSE are 9:15 AM to 3:30 PM, Monday to Friday, with a pre-open session from 9:00 to 9:15 AM. Markets are closed on exchange holidays — see our Market Holidays page for this year's full list and a live open/closed status.
A stop loss is an order that automatically exits your position if the price crosses a level you set, capping your loss. For traders it is essential — it turns an unlimited risk into a known, small one. Decide your exit level before you enter a trade, not after the price starts falling.
Yes, in most cases you can convert an intraday position to delivery before the market closes, provided you have the full funds for the purchase. The reverse is also possible subject to margins. Do note that conversion depends on the stock being available for delivery trades and on your available balance.
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