What It Means
MCX (Multi Commodity Exchange) is India's largest commodity derivatives exchange, where you trade futures contracts on gold, silver, crude oil, natural gas, and base metals like copper and zinc. It works the same way NSE and BSE do for stocks, except every contract here is built around a physical commodity instead of a company's shares.
How It Works
MCX started trading in November 2003 and has been regulated directly by SEBI since 2015, when the erstwhile commodity regulator (the Forward Markets Commission) was merged into it. Prices on MCX track global commodity benchmarks like COMEX and NYMEX, converted to rupees at the prevailing USDINR rate, so a contract's price moves with both the international commodity market and the currency. NCDEX is MCX's counterpart for agricultural commodities such as chana and soybean.