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Copper Futures Trading

Copper Futures Market Facts

Whatever the motivations for trading, a copper futures contract is a metals contract that is a legally binding commitment to accept delivery of the industrial metal at an agreed upon futures price. - Though, many copper futures traders choose to change position before the appointed delivery where an opposite position is taken by the trader (short to long or long to short) before delivery.

Copper metal has found purposes throughout much of history. As a modern industrial, it helps compose important alloys, with practical uses in everyday life that dates from Cyprus Rome to the now.

Normally mined by way of open pits, refined copper is alloyed with zinc to form brass and tin to form bronze. Besides being a valuable conductor of heat and electricity, arguably it can gain greater aesthetic appeal with age, given the onset of patina taint.

The world production trend climbed substantially from the period between 1950 and 2000. The countries of Chili, United States, Peru and China are some of the worlds largest producers. Typically at the forefront is Chile’s vast production capability which can far exceed that of other countries.

Applications include wiring and building materials (roofing & drainage/plumbing, interior fixtures) and electrical parts ( and in motors), among artistic expression, and for medical applications such as radiation therapy as well as industrial processes such as for electroplating. As well as in the production of coinage.

Copper is on the London metals exchange and futures on the COMEX.

Position traders of copper hold contracts for a number of trading sessions. Day traders, hold position only within a day. Scalpers operate in a single session.

The exchanges do places limits, known as set position limits, on the maximum number of futures contracts a trader can hold. Taking into account whether the trader is a speculator or a hedger. Which helps maintain orderly markets.