MCX Options on WebNotes

Commodity options on Zerodha

Sun, 21 Jun 2026 00:00:00 +0000

Commodity options on Zerodha are MCX options on commodity futures, listed on the Multi Commodity Exchange of India, a SEBI-regulated commodity exchange, covering gold, gold mini, silver, silver mini, crude oil, and natural gas, and they differ from equity index options in one mechanic that surprises traders: an in-the-money option does not cash-settle at expiry but devolves into a position in the underlying futures contract at the strike price. Once the commodity segment is active on Zerodha Kite , these options trade alongside the corresponding MCX futures.

Why far-month MCX commodity option orders are rejected on Kite

Sun, 21 Jun 2026 00:00:00 +0000

A far-month MCX commodity option rejection on Kite is a Zerodha risk-management block: orders in commodity option contracts beyond the permitted near-month window are rejected before they reach the Multi Commodity Exchange , because those contracts carry near-zero liquidity and would expose the trader to a fill at a price far from fair value. For most commodity options on Kite you can trade only the current (near) month; the next month opens one day before the current contract expires, and energy options carry a wider two-month window.