Copper Futures Trading
Copper Futures Trading has grown in popularity in recent years. It is an ideal for those looking for a Copper investment.
Copper is reddish-brown in colour. It is an excellent conductor of both heat and electricity. It has many uses in modern life including water piping, electrical wiring and corrosion-resistant parts.
Copper Chart
As you can see from the copper chart above, the copper market has been bullish in recent years. Copper prices were relatively stable between 1995-2003, then from 2003 onwards price rose dramatically.
Copper ContractsStandard Copper contracts are traded on the COMEX exchange. One standard copper contract represents 25,000lbs of copper. Prices are quoted in dollars per lb. The nominal value of a contract is the current price in per lb multiplied by 25,000. For example if the current price was $3 per pound, the nominal value of a standard contract would be 25,000 * 3 = $75,000.
Mini Copper ContractsThere are also mini copper contracts to trade, these are half the size of the standard contracts.
High Grade CopperThere are futures traded on high grade copper, these are traded on the LME exchange.
In conclusion, Copper trading is a way to speculate or invest in copper. As with all instruments, the price of your contract can go down as well as up and losses can exceed your initial margin requirement.
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