MCX Holidays 2024

The Multi Commodity Exchange of India (MCX) is the country’s largest commodity exchange, established in 2003 and regulated by the Securities and Exchange Board of India (SEBI). Initially facilitating trade in gold and silver, MCX has since diversified to include over 50 commodities, ranging from agricultural products to metals and currencies.

MCX operates two trading sessions

• Morning Session: 9:00 AM to 5:00 PM
• Evening Session: 5:00 PM to 11:30 PM during winter and until 11:55 PM during summer.

Trading hours extend from Monday to Friday, making MCX a crucial platform for commodity trading in India.

What are MCX holidays?

During MCX holidays, trading activities on the Multi Commodity Exchange of India (MCX) are “suspended”. In other words, during these holidays, trading in commodities such as gold, silver, crude oil, and other commodities listed on the exchange is not conducted.

These holidays are predetermined and mostly include:

• National public holidays
• Regional public holidays
• Special holidays as declared by the exchange

It is important for traders and investors to be aware of MCX holidays. It helps in:

• Efficient planning of trading activities
• Avoiding likely disruptions to open positions
• Effective risk management

List of MCX holidays 2024

In the calendar year 2024, a total of 14 MCX holidays have been pre-determined. Let us take a look at them:

What is the trading schedule of MCX during regular business days?

During regular business days, the trading schedule for MCX is as follows:

• Trading hours are from Monday to Friday.
• The morning session is from 9:00 AM to 5:00 PM.
• The evening session starts at 5:00 PM and extends to either 11:30 PM or 11:55 PM, depending on the time of year (11:30 PM during summers and 11:55 PM during other times)

Factors to consider during MCX market hours

Effective trading during MCX market hours necessitates a thoughtful approach that incorporates several key factors. To enhance trading outcomes, traders should:

• Monitor market liquidity: The liquidity of commodities can fluctuate throughout the trading day. Identifying periods of high liquidity is essential for ensuring efficient order execution.
• Stay informed about economic indicators: The release of economic data, both domestic and international, can significantly influence commodity prices. Traders should be aware of relevant indicators and their release times to make informed trading decisions.
• Analyse market sentiment: News events, geopolitical developments, and economic policies can impact market sentiment. By closely monitoring these factors, traders can anticipate potential market movements and adjust their strategies accordingly.

How can traders plan around MCX holidays?

Traders should regularly review the MCX holiday calendar and be aware of upcoming market closures. This allows them to plan their trading activities well in advance and avoid unexpected disruptions to their positions. Let us see how you as a trader can plan around MCX holidays:

Consider adjusting your position size

• Before the MCX holidays, traders should consider adjusting their position sizes.
• This adjustment helps in accounting for likely increased volatility and reduced liquidity leading up to the holiday.
• Reducing position sizes reduces risk during periods of uncertainty.
• For example,
  • Say there is a trader in Mumbai who has invested Rs. 10,000 in gold futures contracts
  • They decided to reduce their position size to Rs. 5,000 ahead of Diwali, a major MCX holiday
  • By doing so, the trader accounted for an anticipated increase in volatility in the gold prices

Monitor market sentiment

• Leading up to the MCX holidays, traders should closely monitor market sentiment and news developments.
• By monitoring carefully, you can understand the prevailing market trends.
• Using them, traders can again make informed decisions about their positions before the holiday.

About MCX

MCX is an electronic trading platform that was established in 2003. It is headquartered in Mumbai, India, and is regulated by the Securities and Exchange Board of India (SEBI), the primary regulatory body for securities markets in India. Let us take a look at some of its important features:

What products are traded on MCX?

• MCX facilitates trading in a wide range of commodity derivatives contracts, including:
  • Precious metals (gold, silver)
  • Base metals (copper, zinc)
  • Energy (crude oil, natural gas)
  • Agricultural commodities (cotton, soybean), and various other commodities
• These contracts allow market participants to:
  • Hedge against price risks
    and
  • Speculate on the future price movements of commodities

Who trades on the MCX?

• A wide range of market participants trade on MCX.
• The participants commonly include:
  • Hedgers
  • Speculators
  • Traders
  • Investors
  • Commodity producers
  • Consumers, and
  • Institutional participants

How are trades conducted on the MCX?

• Trading on MCX is conducted through an “order-driven system”.
• Following this system, buyers and sellers submit orders to trade commodity contracts at specified prices.

How are prices determined on the MCX?

• The price of a commodity on the MCX is determined by the market forces of demand and supply.
• MCX provides transparent price discovery mechanisms, with real-time dissemination of crucial market data, such as:
  • Prices
  • Volumes
  • Order book information

Conclusion

MCX holidays represent a period of suspension when no buying or selling of commodity derivatives contracts takes place. In 2024, the exchange notified a total of 14 holidays. By observing these holidays, traders can effectively plan their trading activities and avoid likely disruptions. Also, it must be noted that the MCX holidays are usually predetermined and include national, regional, and special holidays.

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