Lemonn Launches Commodity Trading: Trade Gold, Silver, Crude Oil and More on MCX
Written by Kumar Ashutosh
Reviewed by Gaurav Garg, SEBI-registered Research Analyst
Your trading day no longer has to end when the stock market closes at 3:30 PM.
Lemonn is launching commodity futures and options trading on the Multi Commodity Exchange (MCX), giving traders access to gold, silver, crude oil, natural gas, and base metals through the same platform they use for equity F&O.
With trading hours extending from 9 AM to as late as 11:55 PM, depending on the season, traders can participate in global market movements long after regular equity market hours.
Whether you’re tracking US Federal Reserve decisions, crude oil supply changes, or movements in gold prices, Lemonn brings commodity derivatives trading into your existing trading experience.
What Is Commodity Trading on Lemonn?
Commodity trading on Lemonn allows users to trade futures and options contracts linked to the prices of commodities listed on MCX.
Unlike buying physical gold, silver, or other raw materials, commodity derivatives let traders take positions based on expected price movements without directly owning the underlying commodity.
At launch, Lemonn will support both commodity futures and commodity options, covering three major categories.
| Category | Commodities |
|---|---|
| Precious metals | Gold, Silver |
| Energy | Crude Oil, Natural Gas |
| Base metals | Copper, Zinc, Aluminium and other eligible metals |
For traders already familiar with equity F&O, commodity derivatives offer another market to explore, with different price drivers, trading hours, and risk considerations.
Why Is Lemonn Introducing Commodity Trading?
Commodity markets respond to events happening around the world.
A US interest rate announcement can influence gold prices. Changes in oil production by OPEC+ can affect crude oil futures. Currency movements, inflation data, and supply disruptions can also influence commodity prices.
These events often unfold outside regular Indian equity market hours.
With MCX commodity trading on Lemonn, traders can follow these developments and participate in eligible markets during extended trading sessions.
A Growing Market for Derivatives Traders
Commodity derivatives have seen significant growth in India, particularly in options trading.
According to MCX figures referenced in Lemonn’s product brief for FY2024-25:
| MCX segment | Average daily turnover | Year-on-year growth |
|---|---|---|
| Commodity Options | ₹1,82,134 crore (notional) | 124% |
| Commodity Futures | ₹27,153 crore | 38% |
Commodity options recorded substantially faster growth than futures during the period.
These figures highlight growing market activity, although higher turnover does not necessarily mean better trading outcomes.
What Can You Trade on Lemonn’s Commodity Platform?
Lemonn’s commodity trading offering focuses on precious metals, energy products, and base metals.
1. Gold and Silver Futures and Options
Gold and silver are widely followed commodities because their prices react to inflation expectations, interest rates, currency movements, and global economic uncertainty.
For example, a change in US Federal Reserve policy expectations may affect international gold prices, which can influence MCX gold contracts.
Lemonn users can trade eligible gold and silver derivatives without purchasing or storing physical metals.
MCX also offers different contract sizes, including smaller gold variants such as Gold Mini and Gold Petal, subject to contract availability.
2. Crude Oil and Natural Gas Trading
Energy commodities are influenced by global supply, demand, production decisions, and economic activity.
Crude oil prices may react to OPEC+ production announcements, while natural gas prices can be affected by seasonal demand, weather conditions, and inventory reports.
Through Lemonn, traders can access eligible crude oil and natural gas futures and options on MCX.
Unlike many metal futures, MCX energy contracts are generally cash settled, meaning the underlying commodity is not physically delivered at settlement.
3. Base Metal Trading
Lemonn will also offer access to eligible base metal contracts, including copper, zinc, and aluminium.
Base metal prices often respond to industrial demand, manufacturing activity, infrastructure spending, and global supply conditions.
For traders who closely follow economic developments, these markets offer exposure to a different set of price movements.
What Are MCX Commodity Trading Hours?
One of the biggest advantages of commodity trading is the extended market schedule.
Indian equity markets typically close at 3:30 PM, but MCX commodity derivatives continue trading into the evening.
| Market | Typical trading hours |
|---|---|
| NSE/BSE Equity | 9:15 AM to 3:30 PM |
| MCX Non-Agricultural Commodities | 9:00 AM to 11:30 PM or 11:55 PM |
Timings are in IST. MCX closing times change seasonally based on US daylight saving time. Exchange holidays and special sessions may affect availability.
Why Do Extended Trading Hours Matter?
Many important global economic announcements take place after Indian equity markets close.
These include US inflation reports, Federal Reserve announcements, and energy inventory data.
For traders who follow international markets, extended MCX hours provide additional opportunities to monitor and respond to price movements.
They also make commodity trading accessible to people who cannot actively follow markets during regular office hours.
However, longer trading hours do not reduce market risk. Overnight developments and sharp price changes can still result in substantial losses.
Commodity Futures vs Commodity Options: What’s the Difference?
Lemonn will support both futures and options on MCX.
Although both are derivatives, they work differently.
| Feature | Commodity Futures | Commodity Options |
|---|---|---|
| What you trade | Contract linked to a commodity price | Option on a commodity futures contract |
| Position structure | Futures position with contractual obligations | Buyer receives a contractual right |
| Upfront requirement | Applicable margin | Premium for option buyers |
| Risk | Potentially substantial losses | Buyer generally risks premium paid, subject to expiry and devolvement |
| Expiry | Cash or physical settlement, depending on contract | May devolve into futures |
Understanding Commodity Futures
A commodity futures contract allows traders to take a position on the future price of a commodity.
For example, a trader expecting crude oil prices to rise may take a long position in an eligible crude oil futures contract.
If prices move against the position, losses can accumulate, and additional margin may be required.
Understanding Commodity Options
Commodity options give buyers the right, but not the obligation, to take a position under specified contract terms.
A key difference from equity index options is that MCX commodity options are generally options on futures contracts.
An in-the-money commodity option held until expiry may devolve into a futures position, creating margin and settlement obligations.
Understanding these expiry rules is essential before placing a trade.
What Trading Features Will Be Available on Lemonn?
Lemonn’s commodity offering is designed to bring its trading tools into the commodity derivatives experience.
The planned offering includes:
- Futures and Options: Access eligible MCX commodity derivatives.
- Lemonn App and TradingView Web: Trade using supported mobile and web interfaces.
- AP and DRA: Access the planned AP and DRA features.
- Zing: Use Lemonn’s Zing feature as supported for commodity trading.
- Take Profit and Stop Loss: Set market or limit-based TP/SL orders.
- Trailing Stop Loss: Adjust stop-loss levels as prices move, subject to supported order functionality.
- Underlying TP/SL: Use underlying-price-based exit conditions where supported.
- ScalpPro: Access Lemonn’s trading interface and indicators for supported commodity instruments.
These tools can help traders plan entries, monitor positions, and manage exits. They do not guarantee execution at a particular price or prevent losses during volatile market conditions.
Can You Use Commodity Trading to Hedge Risk?
Yes. Commodity derivatives can be used for hedging as well as directional trading.
Hedging means taking a position intended to offset some of the risk in an existing exposure.
For example, a business affected by rising metal prices may use a suitable commodity derivative to manage part of its price risk.
Similarly, a trader with exposure to oil-sensitive businesses might study crude oil derivatives as a potential hedge.
However, effective hedging requires careful consideration of contract size, price relationships, margin, and expiry. A commodity position does not automatically protect an equity portfolio.
Important Risks to Understand Before Trading Commodities
Commodity derivatives involve leverage, which means relatively small price movements can have a large effect on the value of a position.
Before trading on MCX, consider the following risks.
Margin Requirements
Futures traders must maintain the margin required for their positions. Margin requirements can change with market conditions, and insufficient funds may lead to position liquidation under applicable broker policies.
Physical Delivery Obligations
Some metal contracts can involve physical delivery at expiry.
Holding these positions into the tender or delivery period may result in additional margins, delivery obligations, and charges.
Commodity Options Devolvement
In-the-money commodity options may convert into futures positions at expiry.
This can create additional margin requirements and exposure beyond the initial option premium.
Market Volatility
Commodity prices can move sharply in response to international developments, currency fluctuations, and supply disruptions.
Stop-loss orders can help manage trading plans, but execution prices may differ from the trigger price during rapid market movements.
How to Start Commodity Trading on Lemonn
Once commodity trading is available in your account, the general process will involve accessing the commodity segment, completing any required activation, and selecting an eligible MCX contract.
- Open the Lemonn app or supported web trading platform.
- Check whether the commodity derivatives segment is enabled for your account.
- Explore eligible MCX futures and options contracts.
- Review the contract size, expiry date, margin requirements, and settlement terms.
- Choose your position and supported risk-management orders before submitting the trade.
The exact activation flow, eligibility checks, and in-app steps should be confirmed against the final Lemonn product experience before publication.
Why Trade Commodities on Lemonn?
For traders already using Lemonn for equity F&O, the commodity segment introduces another set of markets without requiring a separate trading platform.
You can explore price movements in gold, silver, crude oil, natural gas, and base metals while using supported Lemonn trading tools.
More importantly, commodity markets operate on a different schedule and respond to a different mix of global factors than domestic equity indices.
That makes them useful to study for both trading and hedging purposes.
With commodity futures and options joining the platform, Lemonn brings global market-linked trading opportunities into one trading experience.
Frequently Asked Questions
Q. Can I trade commodities on Lemonn?
Lemonn is launching commodity futures and options trading on MCX. Eligible users will be able to trade supported contracts covering precious metals, energy products, and base metals once the feature is available in their accounts.
Q. Which commodities will be available on Lemonn?
The launch offering includes eligible contracts for gold, silver, crude oil, natural gas, copper, zinc, aluminium, and other supported base metals.
Q. What time does commodity trading close in India?
MCX non-agricultural commodity trading generally closes at 11:30 PM or 11:55 PM IST, depending on seasonal timing changes and the exchange calendar.
Q. Can I trade commodity options on Lemonn?
Yes. Lemonn’s planned MCX offering includes both commodity futures and options. Traders should understand that commodity options may devolve into futures positions at expiry.
Q. Do I receive physical gold when trading gold futures?
Not automatically. Commodity derivatives are contracts linked to price movements. However, certain metal futures contracts can involve physical delivery if held into the relevant settlement period.
Q. Is commodity trading suitable for beginners?
Commodity futures and options are leveraged products with substantial risk. They are generally more appropriate for traders who understand derivatives, margin requirements, volatility, and settlement obligations.
Q. Can commodity derivatives be used for hedging?
Yes. Commodity derivatives can help manage certain price exposures when positions are appropriately structured. Hedging effectiveness depends on the relationship between the exposure and the derivative contract.
Key Takeaways
- Lemonn is launching commodity futures and options trading on MCX.
- Traders can access eligible gold, silver, crude oil, natural gas, and base metal contracts.
- MCX non-agricultural commodity trading runs from 9 AM until late evening, with seasonal closing times.
- The offering includes access through the Lemonn app and supported web trading interfaces, alongside planned advanced trading tools.
- Commodity derivatives can support both directional trading and hedging, but involve leverage, margin requirements, and settlement risks.
- Understanding contract specifications and expiry obligations is essential before trading.
Disclaimer
The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. Lemonn (Formerly known as NU Investors Technologies Pvt. Ltd) do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
