What you can automate on MCX
| Feature | How it works for commodities |
|---|---|
| Strategy builder | Set entry and exit rules on MCX futures: indicators, price levels, time windows and stop losses |
| Paper trading | Run the rules on live MCX prices without placing real orders |
| Algo bots | Deploy the strategy so it trades in your broker account during MCX hours |
| Signal trading | Turn TradingView alerts on commodity charts into MCX orders |
| MTM stop loss | Close all positions when the day's loss reaches your limit |
| Market alerts | Get a notification when crude, gold or silver reaches a level |
Your broker account needs the commodity segment active. Orders follow SEBI's framework for retail algorithmic trading, which also applies on MCX, and carry an exchange-assigned Algo ID.
Contracts most traded by algo traders
| Contract | Lot size | Price quoted per | Value of a ₹1 move per lot |
|---|---|---|---|
| Crude Oil | 100 barrels | Barrel | ₹100 |
| Crude Oil Mini | 10 barrels | Barrel | ₹10 |
| Gold | 1 kg | 10 grams | ₹100 |
| Gold Mini | 100 grams | 10 grams | ₹10 |
| Silver | 30 kg | Kilogram | ₹30 |
| Silver Mini | 5 kg | Kilogram | ₹5 |
| Silver Micro | 1 kg | Kilogram | ₹1 |
Smaller gold contracts, Gold Guinea (8 grams) and Gold Petal (1 gram), also trade. Check MCX's contract specifications before you trade, because lot sizes and tick values can change.
What a lot is worth
At crude oil near ₹8,600 a barrel, one Crude Oil Mini lot is worth about ₹86,000 and a standard lot about ₹8.6 lakh. A 2% move, about ₹172 a barrel, changes a Mini position by about ₹1,720 and a standard position by about ₹17,200.
Start testing with Mini or Micro contracts. The rules are the same, and the money at risk per lot is a tenth or less.
Trading hours and timing rules
MCX trades non-agricultural commodities from 9:00 to 23:30 IST, extended to 23:55 during US daylight saving time. That changes how you set up a strategy:
- Set session times per strategy. An equity strategy that exits at 15:15 must have a different exit time on MCX.
- Know when liquidity arrives. Gold, silver and crude are most active in the evening, when US markets are open.
- Plan for US data. The US weekly oil inventory report comes out at 20:00 IST during US daylight saving time and 21:00 IST otherwise. US inflation and jobs data come out at 18:00 or 19:00 IST. Many traders pause entries for a few minutes around them.
- Be available. If your strategy trades until 23:30, decide who watches it in the evening, and set an MTM stop loss for the whole session.
Margin
MCX margins are set as a percentage of contract value and change with volatility. Crude oil margins in particular can rise sharply when prices swing. Your broker may add its own margin on top. Before deploying, check the current margin for the contract in your broker's margin calculator, and keep a buffer for margin increases.
Delivery and expiry
- Crude oil futures are cash settled and expire around the 19th of the contract month. Options on crude oil expire a few days before the futures.
- Gold and silver futures can settle by delivery. Most brokers close or block positions before the delivery period starts. Set your strategy to roll or exit before your broker's cut-off.
- Options on MCX are mostly options on the futures contract. In-the-money options can turn into futures positions at expiry, so check the contract terms and your margin.
Costs to include in backtests
| Cost | Rate or basis |
|---|---|
| Brokerage | Set by your broker, often ₹20 per executed order |
| Commodity transaction tax (CTT) | 0.01% of the sell value of non-agricultural futures |
| Exchange transaction charges | Set by MCX, on turnover |
| SEBI fee | ₹10 per crore of turnover |
| Stamp duty | On the buy side, at the state rate |
| GST | 18% on brokerage, exchange charges and the SEBI fee |
Slippage matters more in thin contracts and in the morning, when volumes are lower. Include it in every backtest.
Strategy guides for commodities
- Crude oil trading: contracts, margin, the evening session and four rule-based strategies.
- Gold commodity trading: contracts, margin, the import duty and four rule-based strategies for gold and silver.
- General rules that work on any futures market: Supertrend, moving average crossover, opening range breakout and ATR-based stops.
Start your free trial
Connect your broker, build a strategy and test it on paper before a single live order goes out.
Frequently asked questions
Can I run commodity and equity strategies at the same time?
Yes, as separate strategies with their own session times, as long as your broker account has both segments active and enough margin for both.
Which brokers support MCX trading through QuantPower?
The brokers QuantPower supports offer the commodity segment, but it must be active on your own account. Check with your broker before deploying an MCX strategy. For further details, please contact us.
Do commodity strategies follow SEBI's algo rules?
Yes. SEBI's retail algo framework applies on MCX as well, under MCX's own implementation circulars. Each automated order carries an Algo ID, and you log in to your broker each trading day.
Is commodity trading riskier than equity F&O?
It has different risks: evening sessions, moves driven by global events and the US dollar, high margins in volatile periods and delivery rules for bullion. Size positions with these in mind.
Sources
- MCX, contract specifications for Crude Oil, Crude Oil Mini, Gold, Gold Mini, Silver, Silver Mini and Silver Micro (mcxindia.com)
- SEBI, circular on safer participation of retail investors in algorithmic trading, 4 February 2025, and glide-path circular, 30 September 2025 (sebi.gov.in)
- MCX, circulars MCX/CTCL/235/2025 (6 May 2025), MCX/CTCL/364/2025 (25 July 2025) and MCX/CTCL/504/2025 (1 October 2025) on the retail algo framework
- Finance Act, 2013, Chapter VII, commodities transaction tax
- US Energy Information Administration, weekly petroleum status report schedule (eia.gov)