We all know how to start venturing into the commodity markets for extra trading income. Today we are going to deal with a crucial part of commodity trading, the commodity trading time in India. Before taking a step into the commodity market, one’s being expected to have proper knowledge in this field. As you’ve known that there are versatile products available in the commodity market. Hence, for obvious reasons, it has different trading timings for different market segments. Let’s start from the very beginning to get a basic idea regarding the market.
The Commodity Market
Though the basic idea of commodity trading had been 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 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.
The Process of Commodity Trading
There are numerous ways of trading and investing 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 expiry date.
Now, we are going to move to the main section Commodity Trading Time in India.
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, and maximum traders abide by the MCX rules on timings.
The commodity market takes place on all working days of the week except Saturdays, Sundays, and market holidays. Market timings may change as per the MCX rules. Let us provide the current market timings below:
Commodity Trading Time in MCX (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
(They revise the evening session trading timings 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
Bullion, Metals, Crude Oil, and Internationally linked Agri Commodities: 10:00 AM to 11.55 PM
Other Commodities: 10:00 AM to 5:00 PM
Updates on Trading Time in the 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 30 days from the date of the circular.
No, Commodity trading does not take place on a 24-hour basis in India. The Multi Commodity Exchange of India (MCX) trades five days a week for the commodities market from 9 am to 11.30 pm Monday to Friday with no trade on Saturday or Sunday.
The commencement and end times for the Multi Commodity Exchange of India (MCX) are fixed. Trading begins at 9 am IST and ends at 11.30 pm IST from Monday to Friday throughout the year but has no trading session on weekends – Saturdays or Sundays.
No, there is no trading session scheduled on Saturdays as it’s an off day for MCX exchanges in India. MCX normally opens daily from 9 AM IST and closes at 11.30 PM IST except during holidays when its timings may vary due to reduced hours between sessions/lack of liquidity during the holiday periods, etc.
Trading usually takes place every weekday between 9 AM Your local time till 11:30 PM your local time, depending upon your Indian city’s designated exchange house (MCX or NCDEX). It does not operate on Saturday and Sunday when most exchanges are closed for business though some may be open for public holidays like Republic Day, etc.
Overall, commodity trading time in India is great if you want to increase your returns through beneficial investment opportunities. As long as you research markets and follow trends diligently, then the Indian market can be a lucrative option when it comes to profiting from commodities like gold, silver, and more. I hope this article has provided enough insight into the world of commodity trading. Therefore, you now have a better understanding of how this works. Good luck on your journey!