Why Have MCX Volumes Dropped After The October Peak In Gold And Silver Volatility?
About MCX Futures And Options Activity
The Multi Commodity Exchange (MCX) witnessed heightened activity in the first half of October 2025, driven by sharp price fluctuations in global precious metals — particularly gold and silver. Both FUTCOM (commodity futures) and OPTFUT (options on futures) segments recorded their highest turnover in mid-October as traders responded to increased volatility and safe-haven demand.
However, as international gold and silver prices stabilized toward month-end, derivative trading volumes began to normalize. This shift reflects a broader pattern where short-term speculative interest tapers off once volatility cools and price discovery returns to balance.
MCX FUTCOM Volumes (October–November 2025)
| Date | Traded Contract (Lots) | Total Value (₹ Lakhs) |
|---|---|---|
| 01-Oct-25 | 15,63,769 | 74,24,533 |
| 07-Oct-25 | 17,85,285 | 94,11,062 |
| 09-Oct-25 | 26,45,049 | 1,46,82,386 |
| 17-Oct-25 | 31,29,014 | 1,80,38,107 |
| 24-Oct-25 | 14,69,499 | 70,12,801 |
| 31-Oct-25 | 12,98,417 | 65,07,861 |
| 03-Nov-25 | 11,14,947 | 52,76,918 |
The highest daily turnover in the FUTCOM segment was recorded on 17 October 2025, at ₹1,80,38,107 lakhs, marking the peak of activity. Since then, both contract count and traded value have been falling, indicating declining speculative engagement as global commodity prices steadied.
MCX OPTFUT Activity Snapshot
| Date | Traded Contracts (Lots) | Total Value (₹ Lakhs) | Premium Value (₹ Lacs) |
|---|---|---|---|
| 01-Oct-25 | 40,60,218 | 2,58,43,203 | 5,69,497 |
| 14-Oct-25 | 96,62,564 | 5,64,46,018 | 9,40,097 |
| 16-Oct-25 | 1,45,44,969 | 6,95,71,253 | 7,81,467 |
| 28-Oct-25 | 84,27,282 | 13,60,90,803 | 6,81,015 |
| 31-Oct-25 | 54,42,878 | 18,72,35,863 | 7,07,823 |
| 03-Nov-25 | 45,37,527 | 2,41,74,124 | 5,45,232 |
OPTFUT volumes peaked mid-October as traders aggressively positioned in commodity options amidst global volatility. By early November, both traded contracts and premium value had dropped by nearly 40–45%, pointing to reduced speculative activity and narrowing price ranges.
Strengths & Weaknesses
Strengths
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Weaknesses
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The fall in premium value suggests traders are adopting more cautious short-term stances. Liquidity pockets remain but are concentrated in fewer contracts, particularly December-dated metal derivatives.
Opportunities & Threats
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While short-term derivative action has eased, MCX remains a key hub for hedging and speculative participation, and volume is expected to rebound with renewed commodity price volatility.
Valuation & Investment View
- Short-term: Stable with limited triggers amid declining volatility.
- Medium-term: Possible rebound with festive demand and global cues.
- Long-term: Positive as MCX strengthens its position in India’s derivative ecosystem.
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Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, notes that the cooling-off in MCX volumes is a natural consolidation after an exceptional volatility phase. Investors should monitor open interest and premium recovery as key signs of derivative re-engagement. Explore more such insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on MCX Market Volumes
- Why Did MCX Derivative Volumes Drop After Mid-October?
- How Does Global Gold Volatility Influence Domestic Turnover?
- Which Commodity Contracts See The Highest Liquidity On MCX?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
