MCX

MCX Service By WinRich Professional Services Pvt Ltd

The Multi Commodity Exchange (MCX) is the first commodity exchange in India, and operates under the Securities and Exchange Board of India (SEBI).

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What is the Multi Commodity Exchange (MCX)?

The Multi Commodity Exchange (MCX) is the first commodity exchange in India, and operates under the Securities and Exchange Board of India (SEBI). It offers commodity derivative contracts across different segments including gold, silver and other precious metals along with agricultural commodities like cotton. It provides secure and transparent trade mechanisms that work in conformity to the regulatory frameworks of the BSE and the NSE. The MCX is regarded as one of the largest exchanges in the world and has an 84% share of the market in India. Gold is the highest traded item in MCX, opening the doors to fortune for several thousand Indians.

What does MCX cover?

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What are some of the advantages of trading in the MCX?

Ensures Diversification: With an MCX trading account, you can invest in different commodities and this gives better diversification to your investment portfolio.

Hedging Mechanism to Minimise Losses: Through an MCX account, importers and exporters can minimise losses due to fluctuation in the commodity market. By taking an opposing stand in the commodity futures market, one can shield exposure to the physical market.

Fixing Price of Product: This is another significant benefit of MCX trading accounts. If you are a producer of any product and want to fix the price of any commodity, then you can participate in commodity trading and fix its price. 

Transparency: It brings transparency to the table and presents everything in an organized structure which helps in making an informed choice.

Better opportunities: MCX provides a number of opportunities like several months contracts of derivatives and options that provide liquidity and diversification.

Beneficial for the producers: The MCX’s biggest boon is that it helps producers get better prices for their produce. With an organized MCX Trading market and terminals everywhere, the producers now know what the market prices for their commodities are and hence have better negotiating power with the middleman.

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Why is trading with the MCX important?

Trading over MCX provides a platform for buyers and sellers to enter into various kinds of spot, future, and options contracts among other things. The future market helps in predicting future prices of various goods. The MCX also helps in a cash settlement or physical settlement of contracts, i.e., delivery of goods.

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