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What is MCX? How does it work?

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There are a lot around in the world of trading that people are unfamiliar about. It can be internationally renowned such as Forex trading, or something which is most probably region trading exchange. One such example is Multi Commodity Exchange is also known as MCX. It is an Indian based Exchange business registered from Bombay Stock Exchange (BSC: 534091). It was established in 2003 in Mumbai and is considered to be India’s largest exchange around the commodities market, with a turnover for just a yearly quarter, which was recorded in September 2018 is over 1.78 billion rupees ($25.4 million).

What is MCX?

From above it is pretty much cleared that MCX is basically a commodity exchange industry, that deals in buying and selling of commodities available in Indian markets. MCX is considered to be the world 7th largest commodity stock market based on the quantity of a futures contract is successfully traded. A future contract is a term used in finances which is a legal contract or agreement for buying or selling a property based on the predefined rates advance of the actual date for retrieval.

MCX has recently set up an online-based real-time data service known as ComRIS (Commodity Receipts Information System) which is used to register and record electronically all the transactions being made for commodities from registered warehouses. The recorded data is then transmitted online with the real-time flow.

IS MCX regulated?

MCX is a publicly listed exchange stock market, which is registered in BSE. The headquarters is located in Mumbai, India operated by CEO and key personalities in the world of finance and stock exchange. Being an independent commodity exchange, it serves the global commodity trade market with great success. In terms of regulation, by September 2015, MCX began its regulation of Securities and Exchange Board of India (SEBI). Before that, MCX was handled by another regulatory body known as forwarding Markets Commission (FMC), which was later merged with SEBI in September 2015.

How does MCX work?

Something which has a value and produced in larger quantity is called a commodity and it can be traded. MCX does the same job, but in a broader concept. There are thousands of commodities around the world, whereas MCX deals in specifics only, which include precious metals, base metals, energy, and edible can know the price of commodity through the mcx live price because it provide the exact information of the commodity price.

How are eligible to invest in MCX?

Unlike your grocery store, which also sells your commodities in less amount, MCX only deals in bulk. The quantity is always calculated during any trading through MCX, which leads to our next question, which industry usually invest in MCX? Here are few of the industries which can be benefited from MCX trading.

– Commercial industry: All those companies which produce finished goods from commodities lies in this category. Beside taking goods from farmers or local market, they can trade through MCX in bulk for processing and production of finished goods through commodities.

– Investor industry: A investor, through his technical knowledge and experience can bring out profit from anything, even MCX. Simply by allocating funds on a commodity based on its buying or selling margin, he can increase the gains.

– Retailers: Commodities true benefactors are small and medium retailers who merchandise their goods towards the end consumers. They can be a vital player in MCX business.


MCX is a highly volatile and secure exchange in the commodity trading industry with many benefits. Through understanding MCX live data and prices from real-time reports, you can make sure to get the best deal out of in within seconds.

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