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Understanding of Commodity Variants

5 Mins 25 Feb 2026 0 COMMENT

Introduction

In the evolving financial landscape of 2026, diversifying your portfolio beyond equities is more accessible than ever. Through the Multi Commodity Exchange (MCX) investors can participate in global price movements and explore opportunities beyond equities. For beginners, before placing a trade, there is one key concept to understand. Contract variants - essentially the different contract sizes and types available for trade.

 

What are Commodity Variants?

Commodities are traded in specific units called "lots." A variant refers to the contract's scale. For instance, while a standard “Gold” contract is for 1 kg, a "Gold Mini" variant allows trading in smaller denominations, i.e. 100 g, making it more accessible for retail investors with lower capital requirements.

 

Commodity Options vs. Future:

Commodity Futures: An agreement to buy or sell at a predetermined price on a future date. Requires a margin deposit.

Commodity Options: An options contract gives the buyer the right, but not the obligation, to buy or sell an asset.

There are two types of options:

Call Option: Gives the buyer the right to buy a specific quantity of a commodity at a fixed price before or on a set expiry date.

Put Option: Gives the buyer the right to sell a specific quantity of a commodity at a fixed price before or on a set expiry date.

To get this right, the buyer pays an amount called the option premium to the seller.

The seller receives the premium (pays the margin) and is obligated to fulfill the contract if the buyer chooses to exercise it.

In short:

Buyer = Right, no obligation, Seller = Obligation, no right.

 

1. Bullion: The Foundation of Precious Metals

Bullion contracts such as gold and silver are among the most actively traded commodities. They are often used by investors to seek stability during uncertain market phases, hedge against inflation, and benefit from globally tracked price movements. Smaller contract variants make participation possible even with limited capital, making bullion a practical starting point for new commodity traders.

BULLION

Future

Option

Underlying Code

Underlying Name

Lot Size

Underlying Code

Underlying Name

Lot Size

GOLD

GOLD

1 kg

GOLD

GOLD

1 kg

GOLDMI

GOLDMINI

100 g

GOLDMI

GOLDMINI

100 g

GOLDTE

GOLDTEN

10 g

SILVER

SILVER

30 kg

GOLDGU

GOLDGUINEA

8 g

SILMIN

SILVERMINI

5 kg

GOLDPE

GOLDPETAL

1 g

 

 

 

SILVER

SILVER

30 kg

 

 

 

SILMIN

SILVERMINI

5 kg

 

 

 

SILMIC

SILVERMICRO

1 kg

 

 

 

 

2. Energy & Base Metals: Driving Global Industry

Energy and base metal commodities reflect the pulse of global economic activity. Prices in crude oil, natural gas, copper, aluminium and similar metals are influenced by industrial demand, infrastructure spending, geopolitical developments and currency movements. Because of this sensitivity, these segments tend to witness higher price volatility, offering opportunities for active traders while also enabling businesses to hedge input-cost risks.

ENERGY

Future

Option

Underlying Code

Underlying Name

Lot Size

Underlying Code

Underlying Name

Lot Size

NATGAS

NATURALGAS

1250 MMBtu

NATGAS

NATURALGAS

1250 MMBtu

NATGMI

NATGASMINI

250 MMBtu

NATGMI

NATGASMINI

250 MMBtu

CRUDE

CRUDEOIL

100 bbl

CRUDE

CRUDEOIL

100 bbl

CRUDMI

CRUDEOILMINI

10 bbl

CRUDMI

CRUDEOILMINI

10 bbl

ELECTR

ELECDMBL

50 MWh

 

 

 

 

BASE METAL

Future

Option

Underlying Code

Underlying Name

Lot Size

Underlying Code

Underlying Name

Lot Size

COPPER

COPPER

2500 kg

COPPER

COPPER

2500 kg

ALUMIN

ALUMINIUM

5 MT

ZINC

ZINC

5 MT

ALUMMI

ALUMINI

1 MT

 

 

 

LEAD

LEAD

5 MT

 

 

 

LEADMI

LEADMINI

1 MT

 

 

 

ZINC

ZINC

5 MT

 

 

 

ZINCMI

ZINCMINI

1 MT

 

 

 

NICKEL

NICKEL

250 kg

 

 

 

(*1MT = 1000KG)

 

3. Commodity Indices (Futures): Diversified Trading

Commodity indices allow investors to participate in the broader performance of a group of commodities instead of trading individual contracts. This diversification can reduce the impact of sharp moves in any single commodity while still capturing overall market trends. For investors seeking simplified exposure and balanced risk, indices provide a structured entry point into commodity trading.

 

Here are the details of Eligible Index Constituents, their 2026 Weights:

(Effective from January 28, 2026)

Weights (2026)

Rebalancing Date

GOLD- 70.95%

28-Jan-26

SILVER- 29.05%

 

INDEX

Future

Underlying Code

Underlying Name

Lot Size

BULDEX

MCXBULLDEX

30 UNIT

 

Understanding these contract variants is essential, whether using Futures, Options, or Commodity Indices, to align with financial goals and diversify your portfolio.