Top Traded Value

Top Traded Value

Last Updated on: 22 January , 2025 | 09:48 AM
icon Commodity icon Unit icon Prev Close icon LTP icon Change (%) icon Volume (Nos) icon Value
GOLD
Feb 05, 2025
GRMS79,224.0079,328.00

0.24

3452,738,735,000
SILVER
Mar 05, 2025
KGS92,091.0092,145.00

0.37

7121,973,739,000
GOLDM
Feb 05, 2025
GRMS79,179.0079,267.00

0.29

1,5901,261,878,000
SILVERM
Feb 28, 2025
KGS92,089.0092,203.00

0.32

1,896875,475,000
GOLD
Apr 04, 2025
GRMS80,084.0080,276.00

0.35

100803,042,000
NATURALGAS
Jan 28, 2025
mmBtu325.30325.30

0.15

1,204490,021,000
SILVERMIC
Feb 28, 2025
KGS92,064.0092,196.00

0.34

5,203480,377,000
COPPER
Jan 31, 2025
KGS833.70832.05

[0.02]

224466,494,000
GOLDM
Mar 05, 2025
GRMS79,474.0079,599.00

0.33

570454,224,000
NATURALGAS
Feb 25, 2025
mmBtu291.70290.50

[0.38]

560203,271,000

What is the Top Traded Value on MCX?

Top traded value on MCX refers to the commodities or contracts that recorded the highest trading activity in monetary value during a stipulated period. It is a measure that showcases the interest level and participation in specific commodities, making it an indispensable metric among traders and analysts.

For instance, when crude oil and gold head the traded value table, it indicates their stable demand and necessity in the market. Commodities such as gold, silver, crude oil, and natural gas tend to top the traded value list because of their economic importance, price volatility, and liquidity.

How is Top Traded Value Calculated?

The traded value of the commodity is determined by multiplying the price per unit of the commodity with the total volume of contracts traded within a certain period. Thus,

Traded Value = Price per Unit x Number of Contracts Traded

For example, if 1,000 contracts of gold are traded and every contract is priced at ₹60,000 of 10 grams, the traded value is computed at ₹60 crore.

MCX provides market participants with real-time updates of the traded value during trading hours to monitor which commodities are most active. Real-time data keeps the traders updated about liquidity and helps them formulate relevant trade strategies.

Why is Top Traded Value Important?

Understanding the Top Traded Value is imperative for any trader, investor, and market analyst. It serves several crucial purposes, such as:

  • Market Sentiment: The traded value reflects investor sentiments and interest in certain commodities. A high traded value often signals strong market interest, potentially reflecting leading commodities influencing the overall market.
  • Liquidity: Higher-value traded commodities generally possess better liquidity. This reduces the probability of price manipulation and allows for smooth order execution with minimum slippage.
  • Developing Trading Strategies: Focusing on commodities with high traded value allows traders to maximise price movement, which is useful when trends are strong and participation is high.
  • Market Risk Assessment: Spikes or unforeseen events in traded values may alert market participants to greater market volatility or the effects of vital market happenings so that traders can adjust their strategies to handle risks.

How to Use Traded Value in Trading Strategies

Traded value can become a formidable instrument for developing and perfecting strategies for traders. Here are some effective ways by which one can leverage it:

  • Trend Identification: Commodities with consistently high traded values, such as gold or crude oil, often experience strong price trends. This information enables the trader to enter trades according to the prevailing momentum and then ride the trend for maximum return.
  • Analysing Volume and Price Movements: Volume can be used to compare traded value with price action to find divergences. For instance, if the traded value of a commodity increases significantly while its price remains stagnant, it might indicate a possible accumulation or distribution, signalling a breakout or reversal.
  • Prioritising Liquid Commodities: Higher traded value ensures better liquidity and makes it easier for traders to execute large trades without affecting market prices. This is especially important for high-frequency traders and institutional participants.
  • Tracking Market Opportunities: Sharp peaks in traded value may indicate that market events are around the corner, such as the release of economic data or geopolitical developments that may open opportunities for speculative or hedging trades.

FAQs

Which commodity is highly traded in MCX?

Gold and crude oil are amongst the most traded commodities in MCX. These commodities attract traders due to their economic relevance, high liquidity, and frequent price movements caused by global factors like currency fluctuations, inflation rates, and geopolitical events.

What is the most traded commodity in the world by value?

Crude oil is the most traded commodity with the highest value worldwide. It is the heart of both industrial and transportation markets, and its consumption and pricing impact economies around the globe. Gold follows closely due to its safe status during economic uncertainties.

Which is the largest commodity market in India?

The Multi Commodity Exchange (MCX) is India's biggest commodity derivatives exchange. It offers diverse items, including precious metals, base metals, energy products, and agricultural commodities. MCX is a significant facilitator of commodity trade in the Indian ecosystem, offering transparency, liquidity, and risk management tools to market participants.