Trade Gold, Silver & More on MCXwith Ashlar India

Commodity derivatives trading involves buying and selling standardised futures or options contracts linked to underlying raw materials — such as gold, silver, crude oil, copper, or agricultural commodities — on SEBI-regulated exchanges like MCX and NCDEX. Retail traders typically do not take or make physical delivery of the commodity; instead, they profit from price movements by squaring off their positions before contract expiry.

MCX (Multi Commodity Exchange of India) is India's largest commodity derivatives exchange, focused primarily on metals (gold, silver, copper, zinc, aluminium) and energy (crude oil, natural gas). NCDEX (National Commodity and Derivatives Exchange) focuses on agricultural commodities — wheat, soybean, chana, cotton, castor seed, and spices. Ashlar India provides access to both exchanges from a single trading account.

Yes. On MCX, gold futures contracts track the price of physical gold of defined purity. You buy or sell contracts based on your market view and, if you square off before expiry, no physical gold changes hands. There are no making charges, no purity concerns, and no storage requirements. You earn (or lose) based on the price movement of the contract during your holding period.

A lot is the standardised minimum trading unit for a commodity futures contract on MCX or NCDEX. Trading must occur in whole lots — no fractional lots. Indicative lot sizes on MCX include: Gold — 1 kg; Gold Mini — 100 grams; Gold Guinea — 8 grams; Silver — 30 kg; Crude Oil — 100 barrels. Always verify current lot sizes on the MCX website or via Ashlar India's platform, as exchange contract specifications may be revised.

Upon contract expiry, open futures positions that have not been squared off become subject to the physical delivery process — the seller is obligated to deliver the specified quantity and quality of the actual commodity, and the buyer is obligated to accept and pay for it. MCX has defined delivery centres and quality specifications for each commodity. Most retail traders close their positions before the tender period to avoid physical delivery obligations.

Commodity futures trading involves significant market risk and leverage, which can amplify losses as well as gains. Beginners should invest time in understanding contract specifications, margin requirements, and risk management before live trading. Starting with smaller-lot contracts — such as the Gold Mini (100 gram) contract on MCX — helps limit initial capital exposure while you develop market understanding. Ashlar India provides educational resources and research to support informed decision-making.

Minimum capital requirements depend on the specific contract and prevailing exchange-mandated margin rates. As an indicative guide: the Gold Mini contract (100 grams) on MCX has typically required initial margins in the range of ₹15,000–₹25,000, depending on exchange-set margin rates at the time of trading. Crude Oil and full Gold contracts (1 kg) require substantially higher margins. Use Ashlar India's margin calculator for the current, exact margin requirement before placing any trade — margin requirements change with market volatility.

MCX commodity markets operate from 9:00 AM to 11:30 PM IST on regular trading days. This extended session — significantly longer than NSE/BSE equity market hours (9:15 AM to 3:30 PM) — allows Indian traders to monitor and react to international commodity price developments across the London and New York trading sessions. Agricultural commodities on NCDEX have their own defined trading hours; check the NCDEX website for current session timings.

Profits from commodity futures trading are generally taxable as business income under the Income Tax Act, 1961 — subject to tax at the applicable income tax slab rate. Agricultural commodity transactions may attract different tax treatment in certain circumstances. CTT (Commodities Transaction Tax) applies to non-agricultural commodity derivatives. Investors are advised to consult a practising Chartered Accountant for tax guidance specific to their trading activity and income profile.

Yes. Ashlar Securities Pvt. Ltd. is a SEBI-registered stockbroker and a member of both MCX and NCDEX. All commodity derivatives transactions placed through Ashlar India are exchange-executed, regulated under SEBI's framework, and cleared through the respective exchange clearing corporations.