Currently, I’ve posted an article on Commodity Trading in India. It contains every minute detail regarding the particular trading strategy. Today we are going to deal with a crucial part of the commodity trading, that is Commodity Trading Time in India. Before taking a step in the commodity market, it’s being expected to have a proper knowledge in this field. As you’ve known that there are versatile products available in the commodity market. Hence, for obvious reason, it has different trading timings for different market segments. Let’s start from the very beginning to get a basic idea regarding the market.
Commodity Market and Its Trading Strategy
Though the basic idea of commodity trading had established a long time ago, the stepping stone of formal trading was started by the Forward Market Commission (FMC) from the year 1953. Later FMC was merged with SEBI (Securities and Exchange Board of India). At present, there are multiple regional as well as national exchanges exist to control different segments of commodity trading in the market. If we split the market, four broad sections come out, such as Metals, Energy, Agricultural Products, Livestock, and Meat.
Among these existing exchanges, there are six leading national exchanges, MCX, NCDEX, NMCE, ICEX, UCX, and ACE.
MCX (Multi Commodity Exchange)
In Indian Commodity Market, MCX considers as the largest trading platform. MCX stands for Multi Commodity Exchange, established in the year 2003. It is just alike to NSE or BSE, the only difference is NSE/BSE works for Stock Market while MCX deals with only Commodity Market. Traders or Investors generally follow the MCX rules and regulations as it is one of the leading commodity trading platforms.
There are numerous ways of trading and investment in commodities but the most popular way is future trading. Just like a future contract in the share market, commodity futures also have the same rules. Each futures contract has a specific amount of commodities. The contract is similar to an agreement to buy or sell a specific quantity of a commodity at a predefined price and date. Each futures agreement has an expiration date.
Now, we are going to move to the main section Commodity Trading Time in India.
What is Commodity Trading Time in India?
Before stepping into the commodity trading field, one must be familiar with the timings of commodity trading. As I have stated above that MCX is one of the leading national exchanges in India, maximum traders abide by the MCX rules on timings.
Commodity market takes place on all working days of the week except Saturdays, Sundays and NSE holidays. Market timings may change as per the MCX rules. Current market timings are given below:
MCX Timings (Updated)
Morning Session Timing: 10:00 AM to 5:00 PM
Evening Session Timing: 5:00 PM to 11:30 PM or 11:55 PM
(The evening session trading timings are being revised twice a year but usually, summer closing timing is 11:30 and winter 11.55 PM).
Timings According to Market Segments
Internationally Referenceable Agri Commodities ( Cotton, CPO & RBDPMOLEIN): 10:00 AM to 9:30 PM
Other Commodities: 10:00 AM to 5:00 PM
Updated News on Trading Hours in Commodity Derivatives Segment
Market Regulator SEBI (Securities and Exchange Board of India) has decided and announced to increase the trading time in the commodity market by an hour. The decision is taken to deepen the commodity derivatives market as well as enhance the participation of stakeholders, including foreign entities.
The non-agricultural commodities’ revised timings will be from 9 am to 11.55 pm. For agricultural commodities, the trading hours will be from 9 am to 9 pm.
The regulator said that the provisions of the circular will come into effect from 30 days from the date of the circular.