In investment parlance, commodities are an asset class, separate from equities and bonds. Commodities are traded in respective exchanges. Investors need to understand that the commodity market is different from the equity market and has longer trading hours. Before starting commodity trading, it is best to understand the commodity market timing to plan better trades.
Commodity trading hour:
When learning commodity trading timing, we should look at commodity trading time and the list of trading and clearance holidays.
The commodity derivative market stays open from Monday to Friday weekly. Saturdays and Sundays are weekly holidays. Because of the time difference between different time zones and to match with the opening of the international commodity market, the trading window remains open longer.
The MCX trading hours are
Opening time: 9:00 am
Closing time: 11.00 pm
Segregation of MCX trading time based on commodity categories:
|Commodity type||Trade start time||Trade end time (after beginning of daylight saving in the US in spring)||Trade end time (after the end of daylight saving in the US in spring)|
|Internationally referenced non-agriculture commodities||9:00 am||11:30 pm||11:55 pm|
|Trade modification||11:45 pm||11:59 pm|
|Position limit/collateral value set-up/ cut-off end time||11:45 pm||11:59 pm|
Trading remains suspended on Saturdays and Sundays as weekly holidays. Besides, MCX also publishes a list of stipulated holidays when no trading will happen on the MCX exchange. Below is a complete list of trading holidays and the days they fall.
|Holiday||Date||Day||Morning session||Evening session|
|Republic Day||January 26, 2022||Wednesday||Closed||Closed|
|Mahashivratri||March 1, 2022||Tuesday||Closed||Open|
|Holi||March 18, 2022||Friday||Closed||Open|
|Mahavir Jayanti/Baba Saheb Ambedkar Jayanti||April 14, 2022||Thursday||Closed||Open|
|Good Friday||April 15, 2022||Friday||Closed||Closed|
|Eid-ul-fitr||May 3, 2022||Tuesday||Closed||Open|
|Independence Day||August 15, 2022||Monday||Closed||Closed|
|Ganesh Chathurthi||August 31, 2022||Wednesday||Closed||Open|
|Dussehra||October 5, 2022||Wednesday||Closed||Open|
|Diwali||October 24, 2022||Monday||–||–|
|Diwali Balipratipada||October 26, 2022||Wednesday||Closed||Open|
|Gurunanak Jayanti||November 8, 2022||Tuesday||Closed||Open|
MCX exchange organises a particular Muhurat trading on the day of Diwali. The Muhurat trading window remains open for one hour, and then trading closes for the day. The exchange will announce Muhurat trading timing subsequently.
MCX market timing is divided into morning and evening sessions.
Morning session: 10:00 am to 5:00 pm
Evening session: 05:00 am to 11:30/11:55 pm
Internationally linked agricultural items are traded between 5:00 pm to 9:00/9:30 pm.
Besides the holidays mentioned above, some holidays fall on Saturdays and Sundays. Since these two days are weekly holidays, we didn’t mention them in the holiday list above.
Several holidays are not trading holidays but are clearance holidays. These days, banks remain closed. The orders placed on these days get cleared on the next working day. Following is a list of clearing holidays in MCX in 2022.
|Annual Bank Holiday||April 1, 2022||Friday|
|Buddha Purnima||May 16, 2022||Monday|
|Parsi New Year||August 16, 2022||Tuesday|
Commodity market timing:
Traders can buy and sell stocks during morning and evening sessions.
The morning session starts at 9:00 am and lasts till 5:00 pm. Traders can place orders on securities, including bullions, base metals, and energy commodities.
The evening session is between 5:00 pm and 11:30/11:55 pm. Traders can transact in bullions, base metals, and energy commodities. International traders placing orders on agricultural goods can trade till 9:00/9:30 pm.
The trade timing of the evening sessions is revised twice a year to match the beginning and end of daylight saving in the US. It means that in summer, the evening session closes at 11:30 pm, and in winter, the closing time gets extended to 11:55 pm.
Can MCX change or alter the holidays?
MCX is given the authority to change, alter, or introduce new holidays. They will declare those by issuing separate circulars.
MCX stands for Multi-commodity Exchange and gives traders a comprehensive trading platform when they first register where they can control online trading, risk control, settlement and clearing of commodity derivative trades. The MCX commodity trading time and holidays are declared in advance to help traders plan their trades carefully. MCX trading holidays comprise national and regional holidays, and the morning session remains closed during all these holidays. Please check the list above to know whether the evening session will remain closed.
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