MCX
The Multi Commodity Exchange of India, the country's largest exchange for commodity derivatives.
How it is identified
Test: the contract is a commodity derivative admitted to trading on the MCX, regulated by SEBI
Unit
qualitative
In depth
MCX lists futures and options on bullion, energy, base metals and some agricultural commodities, and it came under SEBI's regulation in 2015 when the commodity regulator was merged into it. Its contracts are used both for genuine hedging by producers and consumers and for speculation, and lot sizes are large enough that a single contract is a substantial exposure. Prices largely track international benchmarks adjusted for the rupee and for import duties, so a rupee move affects domestic prices even when the global price is unchanged. Commodity transaction tax applies to the sell side of non-agricultural contracts.
Worked example
A gold futures contract representing a fixed weight moves with both the international gold price and USD/INR. A 1% rupee depreciation raises the domestic price about 1% with the dollar price unchanged.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “MCX” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.