Gold and Crude Oil Trading in India: A Starter Guide (MCX, NCDEX, and CFDs Explained for 2026)

Written ByTrade246

Last UpdatedSeptember 17, 2026

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Gold and crude are India’s most traded commodities. Together, they constitute much of the daily volume on the Multi Commodity Exchange (MCX), the country’s largest commodity derivatives exchange. For most Indian traders, gold and crude are also the natural first step into commodity trading online. But in commodities, it is somewhat different from stocks. Different exchanges.

Different contract sizes. Different trading hours. Different in everything that affects the price. And a totally different timing once you are actually set in a position. 

This guide will show how the crude oil trade and the gold trade occur in India on MCX, using international benchmarks and as a CFD on a multi-asset platform, without assuming you understand the difference between WTI and Brent or that a US inventory report can cause your MCX position to move at 8 PM IST.

What Is Commodity Trading and Why Do Traders Choose Gold and Crude Oil?

Commodities trading involves buying and selling contracts that represent the actual commodity like gold, crude oil, silver etc. You are not holding the actual metal or commodity but you are trading a derivative (futures), which is a contract based on the underlying physical commodity price.

The two major forces which drive these markets are Hedgers on one side, i.e., jewelry merchants, refiners, airlines, miners, farmers, who hedge against the risk of volatile price movements in the market and lock in the prices for a fixed period. However, speculators include individuals as well as organisations taking directional positions hoping to gain from price swings. Both of these ways to participate generate market liquidity.

Crude Oil and Gold are the ones with the largest turnover due to their extensive trading globally in the Indian markets as well. The MCX crude oil futures contract has a daily turnover of over Rs. 3,000 crore on average, and MCX gold contracts alone trade about 15,000 contracts in one day, equivalent to Rs. 4, 500 crore. These are not shallow or weak markets; in fact, they are some of the highly liquid commodity instruments in Asia.

Why these two specifically?
Gold: India is one of the world’s largest gold consumers. Prices react to global macro events, Fed decisions, USD movements, inflation data, making it a macro trading instrument.
Crude oil: India imports over 85% of its crude oil. Price moves directly affect fuel costs, inflation, and the rupee. MCX crude tracks global WTI prices converted to rupees, giving Indian traders direct access to global energy market movements.

MCX and NCDEX: India’s Two Commodity Exchanges Explained

Trading in commodities at first sight may appear to be a relatively straightforward thing to do, but in fact a thorough understanding of where the trading really takes place in India is needed before you start trading. There are basically two exchanges in which commodities are traded, namely MCX and NCDEX. Although a lot of traders initially start with MCX, comprehensive knowledge about them will enable you to pick the right one and not make blundering choices.

MCX, Multi Commodity Exchange

Founded in 2003 and regulated by SEBI, MCX has become the biggest commodity derivatives exchange in terms of trading volume and currently handles over 80% of commodity market turnover in the country. The commodities traded at MCX are non-agricultural; they include gold, silver, crude oil, natural gas, copper, zinc, aluminium, and nickel.

The market opens at 9:00 AM and closes at 11:30 PM IST with a brief extra session of 11:55 PM extending during US daylight saving time from March to November. The idea behind a long evening session is that one will be able to capture world market movements like the opening of the US market, late London session and major economic releases which are known to influence commodity prices on the global market.

Gold and crude oil are the two most popular instruments traded at MCX. Each commodity is available in different contract sizes ranging from full-size contracts for the big institutional clients to mini and micro contracts that allow retail participants with smaller capital to do commodity trading as well.

NCDEX, National Commodity and Derivatives Exchange

The NCDEX, established in 2003 and regulated by SEBI, is mostly focused on agricultural commodities like wheat, soybean, chana, mustard seed, Guar seed, turmeric and jeera. It is the main market for Indian agri-producers, cooperatives, and agri-exporters looking to cover price movements of their crops.

NCDEX sessions commence from 10:00 AM till 5:00 PM (a few agri contracts remain active till 9:00 PM). The determining factors are mainly homegrown ones: the monsoon forecast, the amount produced, government minimum support price (MSP) measures and the changing levels of a particular demand.

About gold and crude oil, the MCX is the right commodity exchange for most investors. NCDEX would be a good option for someone already in or considering India’s agricultural commodities market.

Crude Oil Trading in India: How MCX Works

What Benchmark Does MCX Crude Track?

Crude oil futures on the MCX use WTI (West Texas Intermediate) crude as the base, NYMEX benchmark, for their underlying price reference. WTI crude is quoted in USD per barrel. MCX calculates the rupee equivalent by multiplying the USD/INR conversion rate. Because of this, your MCX crude oil price is a combination of two elements simultaneously: the global price of WTI, and the dollar-rupee exchange rate.

Brent crude, the international pricing benchmark for most of what India actually imports, trades slightly above WTI, usually in a Rs. 2 to $5 per barrel premium range. While trading, the direction of both WTI and Brent must be kept in view: track NYMEX WTI for MCX contract pricing, and ICE Brent to have an idea of India’s actual import-related cost changes.

Simple formula: MCX Crude price (Rs. /barrel) = WTI price in USD/barrel x USD/INR spot rate. Suppose WTI is priced at $70 and USD/INR is at 84; MCX crude oil will trade at around Rs. 5,880/barrel.

MCX Crude Oil Contract Sizes

On MCX, two different crude oil contract sizes are available. These include the full size, which is the most common crude oil contract of 100 barrels. That’s for the big players, the institutions and large traders. And then you’ve got the mini crude oil contract, which is only 10 barrels, and it’s the size that will make most retail traders able to start trading, as it needs A lot less margin.

If the mini contract size is concerned, margin per lot could be in the range of 3,000 and 8,000 rupees, given how volatile the markets turn out to be. All contracts for crude oil traded on MCX are cash-settled in India. So retail traders are not involved in any physical delivery aspect. You just buy, hold your view, and close your position before or at expiry without physical delivery.

When Is the Best Time to Trade MCX Crude?

The busiest and most active trading in MCX crude is in the evening hours: 6:00 PM to 11:30 PM IST. During this period, American markets start trading, and the New York exchanges remain highly active; besides this the most important data releases are also done.

Two events every crude oil trader in India must know:
EIA Weekly Petroleum Status Report: Released every Wednesday at ~8:00 PM IST (during US daylight saving). A larger-than-expected inventory draw triggers 1-3% spikes within 60 seconds. A surprise build drops prices 2-4% in minutes. Never hold unhedged crude through this release without a defined stop-loss.
OPEC+ production decisions: OPEC+ controls approximately 40% of global crude production. A surprise output cut of 1-2 million barrels/day can trigger 6-10% WTI rallies that flow directly into MCX prices within hours.

What Moves Crude Oil Prices?

Five primary factors determine how consistently crude oil reaches different markets:

• OPEC+ production decisions: It’s a well-established practice within the industry that an increase or a decrease in oil supply from OPEC+ can change the whole dynamics of the petroleum market overnight. For example, it is well known that Saudi Arabia’s fiscal breakeven price is around $70-80 per barrel, a level it has never let it go below.
•  US inventory data (EIA): Weekly stockpile levels from the Energy Information Administration of the US give an idea about the supply-demand balance of crude oil. An inventory draw would imply a situation of high demand over supply, which usually pushes the crude price up, whereas a rise in inventories points out just the opposite.
• Geopolitical events: Any event that leads to the interruption of the supply chain, e. g., military conflict in the Middle East, an oil-producing nation sanctioning regime, or any shipping blockage like the Strait of Hormuz, can cause a very fast jump in the oil price.
• USD/INR rate: A dollar becoming expensive will mean that crude oil will become much more expensive for buyers not US citizens, which generally causes demand to fall. If the rupee loses its purchasing power, then your effective price in the MCX will go up even if WTI price remains the same around the globe.
• Global economic data: Reports on GDP expansion, PMI readings, and most of all big unemployment data (Mainly US Non-Farm Payrolls that are revealed on the first Fridays of a Month IST about 07:30 PM) act as a pointer to how strong or weak the demand may be in the near future.

Gold Trading Online in India: How MCX Gold Works

Gold Contracts on MCX: Which One Should You Trade?

MCX offers four gold contract types. Choosing the right one depends on your capital and experience level.

• Gold (1 kg): A normal-sized contract. The contract value is about Rs. 90-100 lakh (prices are fluctuating a lot). A margin of 4-6% means you have to pay about Rs. 4-6 lakh only for controlling one lot. Mostly used by institutional traders and high-net-worth individuals.
• Gold Mini (100 grams): Contract value is about Rs. 9-10 lakh. The 4-6% margin translates to about Rs. 45,000 to Rs. 60,000 per contract. Actively traded by active retail traders in the market. A 1% price movement can mean around Rs. 8,500-9,000 loss or profit for you on highly volatile days.
• Gold Guinea (8 grams): The very small standard gold contract. You get by with the least money. This is the starting point suggested for completely inexperienced people who just want to try their hand by taking a very small risk on the market.
• Gold Petal (1 gram): The very small contract. The position one can take up is very low compared to the capital required; also, i. e., it is a low-risk investment option, but the number of buyers and sellers is not high, so it can be traded with ease very seldom. It is helpful in studying how price behaves, with capital not very much put at risk.

On the MCX, prices of gold are quoted in rupees per 10 grams. The quoted price of Rs. 95,000 for MCX gold means this is the price of 10 grams. Import duties and taxes are also included in these prices. The MCX spot price is the landed price ready to be handed over in India after all tariffs.

What Moves Gold Prices?

Three drivers account for the majority of MCX gold price movement:

• The US Dollar: The US Dollar has a huge influence, as gold is priced worldwide in USD. When the USD weakens, gold appears to be cheaper for foreigners to purchase; their demand increases, and because of this, prices go up. When the USD strengthens, the opposite happens. In India, there is the USD(INR rate that adds another layer. Even if the international gold prices remain constant and unchanged, a depreciating rupee leads to MCX gold prices going up as India imports most of its gold.
• US Federal Reserve interest rate decisions: US interest rate hikes by the Fed generally hurt gold prices as higher interest rates can cause a preference in investment for interest-bearing vehicles like bonds or savings accounts, which are much better than gold that does not carry any interest. On the contrary, gold may perform better following Fed rate cuts or dovish statements. In 2024 and 2025, multiple Fed rate decisions led to daily MCX gold price swings between 500 and 1,500 rupees per 10 grams.
• Safe-haven demand: Safe-haven demand is that during major geopolitical unrest, financial crises, or sudden downturns in markets, investors rush to buy gold to keep their money. This is why gold frequently moves against equities in risk-off scenarios, thereby acting as a protective hedge for an equity-focused portfolio from the trader’s point of view.

India-specific gold price factor: Gold demand in India is the second largest in the world. It is driven first and foremost by the Indian wedding season during which huge demand is generated for gold (October-December & April-May) and during festivals (Dhanteras, Akshaya Tritiya) besides these two. Buying patterns of domestic importers and jewellers in response to such seasonal demand create a domestic spike that can cause Indian prices for gold (MCX) to exceed international parity

How to Start Trading Gold or Crude on MCX: Step by Step

The process is the same for both gold and crude oil. Here are the practical steps:

Step 1: Open a commodity trading account: To invest in commodities, you need to open an account with a SEBI-registered broker that can also access the MCX exchange. Your account segment could be different from your equity or even the same one where commodities will be enabled. Brokers like Zerodha, ANGLEone, Upstox, etc allow a commodities trading option. The required documents include PAN, aadhar & proof of income to be submitted.

Step 2: Maintain sufficient margin: Money should be deposited as capital in the trading account. You never want to carry on with only the minimum margin required because margin is dependent on the level of volatility, which changes, and insufficient margin will lead to forced liquidation of your open position.

Step 3: Select contract and check liquidity: In crude oil trading, use the mini contract (10 barrels). Gold trading starts with the Gold Guinea (10 grams) or the Gold Mini (10 grams). Always check for openness and volumetric level before you enter because at MCX the near-month contracts have the most liquid contracts.

Step 4: Place an order setting your stop-loss limit. Limit orders are for when you want execution of the trade only at a desired price or better. Market orders will allow execution of the trade at the best prevailing price. A stop-loss order can be understood as an order that automatically closes your position if the price moves against you by the set amount. It is recommended by us that you do not open commodity market trades without having your stop-loss set.

Step 5: Manage Position, Not Outcome: The MCX crude and gold futures could easily move Rs. 100-200 per unit in one session on very volatile days. It’s impossible to ignore the risk of the game when trading commodities. The general rule is to not risk more than 1-2% of your whole amount of trading capital per particular trade, as your losses can quickly add up if you take high risks.

Gold and Crude Oil CFDs: The Multi-Asset Platform Route

The majority of Indian Commodity derivatives trading happens through the MCX exchange. However, there is a second way to do it that is more suitable for a certain kind of trader, i. e. CFDs(Contracts for Difference). This will also allow you to trade multiple asset classes on an online multi-asset trading platform.

A multi-asset platform like Trade246 offers traders the ability to trade gold and crude oil as instruments, with Forex Trading, US Stock Indices, NSE and NFO, from a single account. So, you can get rid of separate accounts for commodity trading and MCX margins. What’s more, you are free to take positions at any time, whether the price of gold and crude oil goes up or goes against you during the trading sessions that often go beyond the MCX session.

The practical differences between MCX futures and CFD trading:

• CFDs: No physical settlement mechanism, no lot size minimum the way MCX defines it, position can be held with no expiry date on perpetual CFDs, access to global market hours beyond MCX session.
• MCX futures: Exchange-regulated, mark-to-market daily settlement, multiple contract size options, cash-settled at expiry, governed by SEBI commodity trading rules.

Making the choice may not mean one is definitely better than the other; the advantage of each one may suit a different kind of trader. A trader seeking to trade crude oil at 11 PM, sell gold short just before a Fed announcement, and then, after a few hours (say, morning), switch to trading Nifty 50 futures via a single interface would likely consider CFD multi-asset platforms as the better choice. On the opposite side of the spectrum, a market participant aiming to get MCX-specific contract features, domestic regulations, and also following MCX open interest data may choose the MCX path.

Trade246 is the market leader in India’s multi-asset trading segments. Besides Forex, US Stock Indices, NSE NFO, and crypto trading, they even offer CFDs for Gold and Crude Oil. If one of the aims were indirect exposure to gold and crude oil prices without having a commodity account, then one might be very well advised to start with a Demo trading account to get a better understanding of CFD pricing related to international benchmarks. Once this has been understood, you will know you are ready to take a big step and use real money.

Risk Management for Commodity Traders: What You Must Know Before Your First Trade

Commodity markets are leveraged markets, you could say. MCX crude minis’ margin requirement is about 15-20% of the contract’s value, so you can control Rs. 65,000 in crude exposure with just a Rs. 10,000-13,000 margin. Such leverage ratios have the effect of magnifying profits and losses alike.

They’re not risks on paper only. MCX crude could easily change over 2-4% in the first 60 seconds after an EIA report release. MCX gold can go up or down Rs. 1,000 per 10 grams in one session if the Fed’s statements have an unexpected shift. Open overnight positions in crude are vulnerable to gaps created by global events that happen at the time when Indian markets are closed.

Three rules every commodity trader should build into their process from day one:

• The 1-2% Rule: Never risk 1-2% of your total trading capital on a trade. For a Rs. 1 lakh account, your maximum loss per trade should be Rs. 1,000-2,000. This makes sure that through inevitable losing trades you remain in the market without experiencing catastrophic drawdown.
• Stop-loss before entry: Fix the level of your stop-loss before taking a trade. Don’t do it afterwards; it should not be a mental act. Set it into the system, letting it rest in the market. It’s mainly crucial for crude oil around EIA release time and for gold at the time of Federal Reserve announcements.
• Avoid overnight crude positions as a beginner: Crude oil is arguably the most sensitive commodity to news on MCX. Geopolitical developments, OPEC declarations, and US inventory figures are just the things that can cause huge overnight jumps. Until you’re fully confident how to deal with a position that opens 4% against you at 9 AM, make sure you exit your crude positions well before MCX closes.

The Bottom Line

Gold and crude oil are the doorways of commodity trading in India, and for good reason. Both are very liquid, interconnected globally and actually sensitive to macro events most traders are already aware of. MCX offers a direct route to both, with a range of contract sizes which are suitable even for a retail beginner just starting with a Gold Guinea or for an institutional hedger running a 100-barrel crude position.

The choice of exchange matters a lot. There is MCX for metals and energy, NCDEX for agricultural commodities and multi-asset CFD platforms like Trade246 for traders who also like to have gold and crude exposure together with global instruments without needing another account for the commodities.

No matter what route you choose, what stays the same: the fundamentals that push prices (Fed decisions for gold, EIA data for crude, OPEC+ for oil supply) and the risk management discipline that sets the ones who survive apart from the ones who don’t. Study the mechanics, practice on a demo account, and don’t enter a commodity trade unless you know exactly where your stop-loss is going to be.

FREQUENTLY ASKED QUESTIONS ABOUT GOLD AND CRUDE OIL TRADING IN INDIA

1. How does crude oil trading work in India?

The Indian crude oil market is mostly located on the Multi Commodity Exchange (MCX). MCX, in the main, enables only two contract sizes, such as a 100-barrel primary contract and a 10-barrel mini contract, which is usually the one used for retail purposes as a main entry gate into the market. 

As a benchmark, MCX crude quotes track WTI prices from NYMEX, which are quoted at the USD/INR rate to get in local rupee terms. Besides that, all crude contracts on the MCX are settled in cash, and there is actually no delivery of physical commodities for retail traders. Trading begins at 9:00 AM and ends at 11:30 PM IST, with maximum activity from 6:00 PM when the US markets are open.

2. How do I trade gold online in India?

Gold trading online in India is done through MCX gold futures contracts. An MCX commodity trading account with a SEBI-registered MCX broker is required. Through MCX only, full Gold (1 kg), Gold Mini (100 grams), Gold Guinea (8 grams) and Gold Petal (1 gram) contracts are available. Novice traders usually start off by trading either Gold Guinea or Gold Mini as these contracts require lower margins. The gold bullion is also available for trading as CFDs on multi-asset platforms like Trade246 without separate commodity account opening.

3. What is the difference between MCX and NCDEX?

MCX (Multi Commodity Exchange) deals with non-agricultural commodities, which mostly include gold, silver, crude oil, natural gas, copper, and zinc. Its prices are mainly determined by the world markets. NCDEX (National Commodity and Derivatives Exchange) deals with agricultural commodities: wheat, soybean, channa, guar seed, mustard seed, and spices.

 NCDEX prices are largely influenced by domestic factors like monsoon patterns, crop output, and government MSP policies. Naturally, given the higher traded products, MCX daily turnover is much larger than NCDEX and accounts for over 80% of India’s total commodity market trading volume. Both exchanges are under the regulation of SEBI.

4. What moves crude oil prices on MCX?

Factors that mainly drive the movement of MCX crude oil prices are: OPEC+ production decisions (unexpectedly deep cuts might cause WTI prices rising by 6-10% ), US EIA weekly crude inventory numbers (they appear around 8 PM IST on Wednesday, and can instantly produce 1-4% movement), any geopolitical events threatening the Middle East oil availability, the USD/INR exchange rate (as long as WTI remains flat globally, a weakening rupee will push up MCX crude oil prices), and global economic data giving indications about the direction of demand (either strong or weak).

5. What moves gold prices on MCX?

Three major elements control gold prices on MCX: the U. S. Dollar index (gold prices fall when the dollar strengthens), U. S. Fed rate setting (if they raise the rate, gold usually declines; if they ease it, gold goes up) and finally, the safe-haven demand, the kind of investment people resort to when there is a geopolitical or a financial crisis. USD/INR rate offers an Indian angle to the situation.

If the rupee devalues, it pushes up MCX gold prices even if international gold prices don’t change. The festival and marriage season-related Indian demand is another factor that leads to occasional buying pressure.

6. Can I trade crude oil and gold without an MCX account?

Yes, gold and crude oil can, in fact, be traded as CFDs (Contracts for Difference) on multi- asset platforms like Trade246. Through a single account, you can trade not just the mentioned instruments but also Forex, Nifty 50, US Stocks, and Crypto. CFD trading doesn’t necessitate a separate commodity segment account or MCX membership. 

You have the facility to go long/short; trading at global extended sessions is possible, and you can access the commodities without being limited by MCX futures contract lot sizes. The regulatory environment and product structure of CFDs are distinct from MCX futures. Speak with a licensed financial advisor if you want to find out how these differences may impact you.

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