MCX Commodity Calculator for Intraday | Positional Commodity Trading (2024)

FAQs

Which commodity is best for intraday trading? ›

Most aggressively dealt commodities on MCX are gold, silver plus crude oil and on NCDEX is mentha oil, crude palm oil in addition to cotton etc. Traders ought to always begin with the commodities where they have some kind of industry knowledge. Then, they can pick commodities that fall within their risk constraints.

Intraday facility is available only in respect of intra-day order on MCX (Multi Commodity Exchange) and NCDEX (National Commodity Exchange) in respect of selected commodities, as may be notified by IICL from time to time.

A higher volume of any commodity will increase volatility, but it will also create many opportunities for intraday trading so that traders can make substantial profits. As a result, high-volume commodities have to potential to generate substantial returns for traders.

The Moving Average Convergence Divergence (MACD) indicator is often considered one of the most accurate technical indicators. That is because it uses a combination of moving averages to spot potential buy and sell signals.

Momentum indicators are the most popular for commodity trading, contributing to the trusted adage, “buy low and sell high.” Momentum indicators are further split into oscillators and trend-following indicators.

Keep your focus on a few commodities

When trying to partake in commodity intraday trading, it is important to restrict your focus down to just a few commodities. Since each commodity and the factors that influence them are unique, trying your hand at multiple commodities can get you into trouble.

The MCX price is dependent on: International price. USD to INR conversion rate. Quoted unit of Gold or Silver.

How to calculate commodity profit? ›

To calculate profit, subtract the total cost of purchasing the commodity from the total revenue received from selling it. To calculate loss, subtract the total revenue received from selling the commodity from the total cost of purchasing it.

The intraday stocks always move based on the market sentiment and hence if you have to make profits in intraday, the trade has to be based on the movement of the stock market. For example, if the market is bullish, then buy and sell a few times to earn small profits rather than waiting for that big move.

Futures on highly-liquid commodities like crude oil and gold make them good instruments for day trading. Day trading in commodity futures also offers a diversification of assets from the usual equity or index-based trading.

To choose the best stocks for intraday trading, most traders will find it beneficial to look at equities or ETFs that have at least a moderate to high correlation with the S&P 500 or Nasdaq indexes. Then, isolate those stocks that are relatively weak or strong compared with the index.

You choose a limit order type when you are keen on transacting at a particular price; else, you can opt for a market order. You choose CNC as a product type if you want to buy and hold the stock across multiple days. If you want to trade intraday, you choose NRML or MIS.

Three of the most commonly traded commodities include oil, gold, and base metals.