MCX stands for Multi Commodity Exchange of India. It is a commodity exchange located in India that allows individuals and institutions to buy and sell commodity contracts. Commodities that are traded on MCX include precious metals such as gold and silver, base metals such as copper and aluminum, energy products such as crude oil and natural gas, and agricultural products such as cotton and spices.
Trading on MCX works similarly to other financial markets like stock exchanges. Investors and traders can buy and sell contracts through registered members of the exchange, known as brokers. The price of each commodity contract is determined by supply and demand in the market. When a buyer and a seller agree on a price, a trade is executed and the contract is settled at a later date.
The MCX also provides various tools and resources for market participants, such as market data, research reports, and educational materials. The exchange also sets rules and regulations for trading to ensure a fair and orderly market.