An Overview
Commodities are an asset class distinct from bonds and stocks in the investment world. Commodities are traded on different exchanges. Investors must know that the commodity market is not the same as the stock market and also has longer trading hours. It is best to know commodity market timing before beginning commodity trading to plan improved trades.
Understanding Commodity Trading Market Trading Time
We should glance at commodity trading time as well as the list of trading and clearance vacations when studying commodity market timing in India.
The commodity derivative market operates weekly from Monday to Friday. Weekend holidays are Saturdays and Sundays. The trading window stays open longer due to the time difference between multiple time zones and to coincide with the opening of the international commodity market.
The MCX trading hours are as follows:
- Closing time: 11 pm.
- Opening time: 9:00 am.
Separation of MCX trading time by commodity category:
|
Commodity type
|
Trade start time |
Trade end time (after beginning of daylight saving in the US in spring) |
| Internationally referenced non-agriculture commodities |
9:00 AM |
11:30 PM |
| Position limit/ cut-off end time/collateral value set-up |
|
11:45 PM |
| Trade modification |
|
11:45 PM |
Commodity Market Trading: Holidays
On the day of Deepawali, the MCX exchange organizes a special Muhurat trading session. The Muhurat trading window is available for one hour before trading concludes for the day. Following that, the exchange will declare the Muhurat trading hours.
The MCX market is separated into evening and morning sessions:
- Evening session: 05:00 am to 11:30/11:55 pm
- Morning session: 10:00 am to 5:00 pm
Internationally related agricultural commodities are exchanged between 5:00 and 9:00/9:30 pm.
Aside from the holidays stated above, certain holidays fall on Saturdays and Sundays. We did not include these 2 days inside the holiday list below since they are weekly holidays.
Numerous holidays are not trade holidays but rather clearing holidays. Banks are still closed these days. Existing orders on these days are processed the next business day. Below is a list of MCX clearance holidays for 2023.
| Holidays |
Date |
Day |
| Annual Bank Holiday |
April 1, 2023 |
Saturday |
| Parsi New Year |
August 16, 2023 |
Wednesday |
| Buddha Purnima |
May 5, 2023 |
Friday |
Wrapping Up
When traders initially join MCX, they are given a full trading interface where they may handle online trading, settlement, risk control, and clearing of commodities derivative deals. The MCX commodities trading hours and holidays are announced in advance to assist traders in carefully planning their deals.
Open a Demat account with Motilal Oswal if you are ready to invest in the commodity market timing in India.
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