Free Demat & Trading eKYC APPLY e-IPO Fund Transfer

home | broking distribution |markets & news


Note : Alpha commodities Pvt Ltd. has been asserted with LKP Securities Limited. Equity, commodity and currency business all under LKP Securities Limited.

Commodity Futures Trading India, Commodity Futures & Options

Commodity futures trading India has emerged as a distinct trading class in the last 14 years since the MCX first started trading in commodity futures. Over the last few years, NCDEX has built an expertise in agricultural commodities while the MCX has built expertise and volumes in the non-agri segment. Commodity futures trading is slightly different compared to the traditional equity F&O. While all equity transactions are necessarily settled only in cash, commodity futures can be settled either in cash or through delivery of the specific commodity. Also, the margins on commodity futures are lower than the margins on stock and index futures considering that the scope for extreme price volatility is lower in case of commodities.

Commodity futures trading in India…

For a long time the commodity exchanges were only permitted to offer trading in commodity futures. It is only recently that SEBI has permitted options trading on commodities too. Options on commodities are slightly different than equity options. While equity options are an option on the underlying asset, the commodity option will be an option on the underlying commodity futures. That makes it slightly more complicated. There is a reason for this dichotomy. In case of the equity markets, SEBI regulates the spot and the futures market. But, in case of commodities, SEBI only regulates the futures and options market while the spot markets are regulated by the respective states. That is why this commodity / future relationship is less seamless compared to equities.
Commodity futures trading can be used to take a directional view on commodity prices or even as a hedge against future prove movement. An individual trader who expects gold prices to go up can buy gold futures in the commodity exchange and reverse the transaction when the price moves up. The same can be done on the short side also. On the other hand, if an oil refiner wants to hedge against the rising crude oil prices, then that is also possible through crude oil futures. Of course, the hedger can decide whether they want to trade the movement or take actual delivery of crude oil on the settlement date.

Get Quotes on Commodities at LKP Securities…

An easy way to drill down into details of commodity futures and options is to use the LKP “Get Quotes” page. Here one can select the commodity by the specific exchange (MCX or NCDEX) and further drill down to the specific monthly contract. The page provides a quick screener with all relevant details about the particular commodity contract. These include the last traded price, the price change, the shift in open interest, the overall volumes on a particular day and the high/low to give you an idea of the range risk in the commodity. The page also captures a graphical price chart of the specific contract over the last 1 month to help you decipher the short term trading trend of the commodity. In a nutshell, a wealth of information considering that it is juxtaposed with a host of very specific analytics pertaining to the commodity.


Expiry Date:

Registered Office: 203,Embassy Centre,Nariman Point,Mumbai - 400021.
Tel: +91 22 4002 4785/4002 4786 Fax: +91 22 2287 4787
Single SEBI registration number for NSE/BSE/MSEI : INZ000216033 CIN L67120MH1994PLC080039 and Maharashtra GSTN No. 27AAACL0963A1ZZ
Research Analyst registration number: INH00001758
DP registration number: IN-DP-CDSL-206-2003
PMS registration number: INP000005299
In case of grievances for Securities Broking /DP write to us on
For linking your Demat/trading account with Aadhaar, submit the self-attested copy
of your Aadhaar Card along with a written request signed by all the holders.
SEBI Complaint redressal system Advisory for investor

For Call & Trade / Support Desk Call :1800-1020-198 Customer Desk No : 022-41507346 Whats App Us :7208914888 Privacy Policy & Disclaimer | FAQs | Sitemap
Arbitration Mechanism on the Stock Exchange
Copyright © 2010 LKP
Designed , Developed & Content Powered by Accord Fintech Pvt. Ltd.

Download GetSetGrow@LKP App

Filing Complaints on SCORES- Easy & Quick :

  • A. Register on SCORES portal
  • B. Mandatory details for filing complaints on SCORES:
    • 1) Name
    • 2) PAN
    • 3) Address
    • 4) Mobile Number & Email ID
  • C. Benefits:
    • 1) Effective Communication
    • 2) Speedy redressal of the grievances

Attention Investors

  • Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.
  • Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.
  • Pay 20% upfront margin of the transaction value to trade in cash market segment.
  • Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued vide circular reference NSE/INSP/45191 dated July 31, 2020 and NSE/INSP/45534 dated August 31, 2020 and other guidelines issued from time to time in this regard.
  • Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month. .......... Issued in the interest of Investors