MCX on WebNotes

How to activate commodity segment on Zerodha

Tue, 12 May 2026 00:00:00 +0000

This guide explains how to activate the commodity futures and options segment (MCX) on an existing Zerodha account, covering the income proof requirement, the structure of Zerodha’s commodity membership, and the distinct features of commodity trading compared to equity.

Step-by-step procedure

Step 1: Understand the commodity segment structure

Zerodha’s commodity segment operates through its SEBI-registered commodity broking entity, which holds membership of the Multi Commodity Exchange (MCX) and the National Commodity and Derivatives Exchange (NCDEX). The Zerodha commodity segment overview describes the instruments available, including:

How to compute commodity margin on Zerodha

Tue, 12 May 2026 00:00:00 +0000

Commodity margin on MCX is computed using the SPAN (Standard Portfolio Analysis of Risk) methodology, the same framework used for equity futures and options on NSE. Understanding how to calculate margin accurately before placing a trade prevents the two most common failure modes on commodity derivatives: the RMS auto-squareoff from a margin shortfall, and the shock of a mid-session margin call after an exchange SPAN revision.

This guide covers the full computation workflow using Zerodha’s SPAN calculator, the variables that drive margin levels, cross-margining for hedged positions, and the role of CTT and other charges in the overall cost calculation.

How to trade crude oil futures on MCX via Zerodha

Tue, 12 May 2026 00:00:00 +0000

Crude oil futures on MCX are the most actively traded non-agricultural commodity derivatives in India. A single lot represents 100 barrels, providing leveraged exposure to global crude oil prices – largely anchored to WTI and Brent international benchmarks – denominated in Indian rupees. Zerodha provides direct access through Kite once the commodity segment is activated.

This guide covers the complete workflow from account setup to exit, including the critical physical-delivery risk that distinguishes commodity futures from cash-settled instruments such as USDINR currency futures.

CDS/MCX product circle on Zerodha

Mon, 11 May 2026 00:00:00 +0000

Overview

Indian financial markets are divided into distinct regulatory segments, each governed by its own set of SEBI and exchange regulations, and each requiring specific regulatory approvals for both brokers and clients. At Zerodha, the “product circle” refers to the set of market segments a client’s account is enabled to trade in. By default, a Zerodha account is enabled for equity trading on the NSE and BSE – both the cash (equity delivery) and derivatives (equity futures and options) segments. Additional segments, specifically currency derivatives (traded on the NSE’s CDS segment and the BSE’s CD segment) and commodity derivatives (traded on the Multi Commodity Exchange, MCX), require separate activation.

Commodity derivatives (MCX) on Zerodha

Mon, 11 May 2026 00:00:00 +0000

The commodity derivatives segment on Zerodha provides access to futures and options contracts on the Multi Commodity Exchange of India (MCX), the country’s largest commodity exchange by volume. The segment covers metals (gold, silver, copper, aluminium, zinc, lead, nickel), energy (crude oil, natural gas), and agricultural commodities (cardamom, cotton, crude palm oil). Zerodha also offers access to the National Commodity and Derivatives Exchange (NCDEX) for agricultural commodity contracts.

India’s commodity derivatives market was merged under SEBI’s regulatory umbrella in 2015 after the Forward Markets Commission (FMC) was merged into SEBI pursuant to the Forward Contracts (Regulation) Amendment Act, 2010. This integration brought commodity brokers under the same regulatory framework as equity brokers and enabled equity broker-members such as Zerodha to offer commodity derivatives without a separate licence.

Zerodha MCX membership

Mon, 11 May 2026 00:00:00 +0000

Zerodha Broking Limited is a trading member of the Multi Commodity Exchange of India Limited (MCX), the country’s largest commodity derivatives exchange by turnover. MCX membership authorises Zerodha to execute commodity futures and options contracts on behalf of its clients in segments covering bullion, base metals, energy, and agricultural commodities. Zerodha’s presence on MCX allows retail clients to access commodity derivatives markets that were historically the preserve of commodity brokers, consolidating all trading activity into a single Kite-platform interface.