Gold, silver, crude oil, natural gas and copper are the most traded commodities on MCX, India’s largest commodity exchange. They ranked top by futures turnover in April to June 2026 and together made up about 97% of it.
Source: MCX Q1 FY27 results, as reported by Investing.com.
Turnover shows where trading activity is concentrated, but not how liquid a specific contract is. Before you trade, check the spread, market depth, volume and open interest of your exact contract and expiry.
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5 Best Commodities to Trade in India
1. Gold
Gold ranked first by MCX futures turnover. MCX lists it in five sizes, from Gold (1 kg) down to Gold Petal (1 gram), so you can choose how much exposure you take per lot.
Prices move with US interest rates, the US dollar, inflation, central bank buying and the rupee.
Options trade on Gold and Gold Mini.
Suits: Traders who want to match their position size closely to their capital.
2. Silver
Silver often swings more sharply than gold, because its demand comes from both investors and industries like solar panels and electronics.
Contract sizes are Silver (30 kg), Silver Mini (5 kg), Silver Micro (1 kg) and Silver 100 (100 grams).
Options trade on Silver and Silver Mini.
Suits: Traders who are comfortable with bigger price swings than gold.
3. Crude Oil
Crude oil is the most traded energy contract on MCX. It reacts quickly to OPEC+ decisions, geopolitical news and weekly US inventory data.
Contract sizes are Crude Oil (100 barrels) and Crude Oil Mini (10 barrels).
The US crude inventory report usually comes out on Wednesdays at 8 PM IST (9 PM after US daylight saving ends), except in holiday weeks.
Suits: Traders who can follow the evening session.
Want to see how crude oil options react to US inventory data? Replay a past MCX evening session in the AlgoTest Option Simulator and practise your entries and exits.
4. Natural Gas
Natural gas prices can swing sharply within a single session. They are driven by US weather forecasts, LNG exports and weekly storage data.
Contract sizes are Natural Gas (1,250 mmBtu) and Natural Gas Mini (250 mmBtu).
The US gas storage report usually comes out on Thursdays at 8 PM IST (9 PM after US daylight saving ends), except in holiday weeks.
Suits: Experienced traders with strict position sizing and stop-losses.
Trading natural gas options? Model your position in the AlgoTest Strategy Builder to see its payoff, breakeven and maximum loss (where defined) before a volatile session.
5. Copper
Copper is the most traded base metal on MCX. Its price often tracks global industrial demand, especially from China.
The contract size is 2,500 kg, and options trade on Copper.
Prices also follow London Metal Exchange (LME) prices and global manufacturing data.
Suits: Traders who follow global economic trends.
Other Commodities
Aluminium, zinc, lead and nickel also trade on MCX, along with cotton, mentha oil, cardamom and electricity. Agri commodities like guar seed, jeera and turmeric trade mainly on NCDEX. These contracts usually see far less turnover, so read our guide to liquidity in trading before you trade them.
Which Commodity Is Best for Trading?
The best commodity for you depends on your capital, how you handle price swings and when you can trade. This table compares the smallest futures contract for each.
These rupee amounts show exposure per lot, not risk. A ₹1 move is a much bigger percentage move in natural gas than in gold, so compare contracts by their full value using our MCX lot size guide.
A smaller contract reduces your exposure per lot, but it does not make the market easier to trade.
Close compulsory-delivery contracts before expiry unless you can take or give delivery.
Commodity options that are in the money at expiry turn into futures positions, which need full futures margin.
All five trade until 11:30 PM (11:55 PM after US daylight saving ends), as our MCX trading time guide shows.
How to Test a Commodity Strategy Before You Trade
AlgoTest supports MCX backtesting for gold, silver, crude oil and natural gas, the four most traded commodities on this list.
Backtest your rules on historical MCX data to see the win rate and maximum drawdown across calm and volatile months.
Compare regular and mini contracts in the Strategy Builder to see how lot size changes your exposure.
Replay past sessions in the Option Simulator to practise your entries and exits without real money.
To compare automation tools, read best MCX algo trading software in India.
Pick a Liquid Commodity, Then Test Your Plan
Start with a commodity that sees heavy trading and a contract size that fits your capital. Then define your entry, exit and position risk, and check how the plan holds up across calm and volatile sessions before you trade it live.
AlgoTest helps you move from an idea to a strategy you can inspect and test before deciding whether to deploy.
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FAQs
Which is the best commodity to trade in India?
There is no single best commodity for everyone. Gold, silver, crude oil, natural gas and copper were the five most traded on MCX by futures turnover in April to June 2026, so most traders choose among them based on capital and trading hours.
What is the most traded commodity in India?
Gold ranked first by MCX futures turnover in April to June 2026, with a 34.5% share. Silver was second at 29.7%, and crude oil was third at 16.6%.
Which commodity is best for intraday trading?
Traders often choose crude oil, natural gas, gold or silver for intraday trading because these contracts see heavy turnover on MCX. Check the spread and depth of your exact contract, and your broker’s intraday square-off time, before you trade.
Which commodity is best for beginners?
Many beginners start with smaller contracts like Gold Petal, Gold Ten, Silver 100 or Crude Oil Mini to keep exposure per lot low. A smaller lot does not make the market easier, so learn how margin, expiry and delivery work first.
How much money do I need to trade commodities in India?
It depends on how you trade. Futures need margin set by the exchange and your broker. Buying an option needs only the premium, while selling an option needs margin, which is usually much higher than the premium.
Can I backtest commodity strategies on AlgoTest?
Yes. AlgoTest supports backtesting and live trading for Crude Oil, Gold, Natural Gas and Silver futures and options through Zerodha, for a flat ₹2,000 per month on top of your AlgoTest plan.
Editorial note: This article is for education and is not investment advice. Contract details come from MCX contract specifications, reviewed on 21 October 2026. Commodity derivatives use leverage and can lead to losses larger than your margin.
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