FYERS- launches multi commodity exchange (MCX) for traders

The technology-focused stock brokerage firm, FYERS launches Multi Commodity Exchange (MCX) on its trading platform.

FYERS is the only stock-broking firm in India to provide MCX trading on the world-renowned Trading View charts. Clients can trade commodity derivatives on all their platforms.

The MCX trading provides traders with the most suitable leverage and reducing risks associated with the price volatility in the commodity markets. It is in sync with the same pricing model for MCX futures & options as compared to other segments like the equity & currency segments without making any changes.

Launching this initiative for traders, Tejas Khoday, Co-founder & CEO, FYERS said, "We launched MCX in late September 2018 to provide access to all financial asset classes on a single platform. Our clients can now trade in indices, stocks, ETFs, equity derivatives, currency derivatives, and commodities. We give Indian traders access to all kinds of available derivatives across different exchanges. Trading in commodities is very different from trading equities. For instance, stocks are very news sensitive and have many variables which are responsible for the stock price such as news, valuation, corporate governance, corporate actions, underlying businesses, etc. Hence, technical analysis cannot be fully utilized while trading stocks. Also, stock markets are highly correlated and macro can easily affect stocks from different sectors alike."

Khoday further added, "However, commodity markets are mostly driven by demand/supply dynamics and they are not uniformly correlated to other commodities, unlike equities. Hence, the scope of trading using technical analysis is much higher. Also, the variables involved in commodity trading are far lesser than equities.

It is easier to follow as the underlying fundamentals don't change too much. People must be aware that commodities are priced in US Dollars but on MCX are quoted in Indian Rupees. This effectively means that the Indian futures prices are a derivative of the underlying commodity and also the USDINR price which can fluctuate quite a lot. Hence, traders can hedge their positions by using USDINR contracts on our platform too.