First question arises in everyones mind- What is Lot Size?
In simple words Lot Size is a group of assets, products and base currency is defined in a contract.
When it comes to Commodity Market- Trading is done in Lot Size, Lot Size is decided by exchange and Commodity Exchange is regulated by Ministry of Food, Agriculture and Public Distribution.
What is MCX and MCX Commodity?
MCX stands for Multi Commodity Exchange.
Commodity Exchange is of two types MCX and NCDEX. NCDEX stands for National Commodity & Derivatives Exchange and is a Public Limited Company.
MCX Commodity- In MCX Commodity generally 3 group of Commodities are traded, they are:-
(1) Energy- Energy includes trading of Crude Oil & Natural Gas.
(2) Metals- Metals include 2 groups:-
(a) Base Metals- Aluminium, Lead, Zinc, Copper & Nickel. (b) Precious Metals- Gold & Silver.
(3) Agri Products- Like Wheat, Turmeric, Chana, Soya Bean, Barley, Maize etc.
What is MCX Commodity Lot Size?
As per decided by Commodity Exchange Lot Sizes for different commodities has been defined as follows:-
Commodity—-Base Value—-Lot Size
Gold M—-10 gram—-10
Gold Guinea—-8 gram—-1
Silver M—-1 kilogram—-5
Crude Oil—-1 barrel—-5
Soya Oil—-10 kilogram—-10 metric ton
Soya Seed—-1 metric ton—-10 metric ton
Lead MINI—-1 kilogram—-1000
Zinc MINI—-1 kilogram—-1000
Natural Gas—-per mmBtu—-1250
MCX Commodity Trading is reputable business to trade in. Investment in MCX Commodity needs a huge capital and close market watch with updated information. Conclusion is that one can avail the services of any good advisory company, which might help in reducing time involved in Commodity Trading & its complexity. These companies provide some Follow Ups by SMS which is to be followed.