Copper Trading your best source online

 

 

Copper Trading is used to track the copper market. Copper lately has been a huge economic indicator and in particular the consumption by China is of big interest to traders.

 

Copper is classified as a base metal and traded in the United States on the CME Groupe exchange.

Copper Trading Prices

Copper trades in a futures contract of 25,000 pounds. Copper has been trading in a range of $3.01 - $4.73 a pound over the past year 2011. Going back five years the range is $1.59 - $4.73 per pound. Every cent the price of copper moves is a $250 move in value. A full $1.00 move in the copper market would equate to a $25000 move in the futures contract (250 cent X $1.00 move = $25000). A $1.50 move in the copper market has a value of $37,500 and would be considered a move of historical proportions.

Copper is traded with a futures contract to speculate on whether the price is to go up or down. If you think copper will increase in value you would want to go long a futures contract. This would be the case if you predicted that the amount of copper production was going to be lower due to something such as a mining accident. If demand for the copper is high then the price of copper should go higher. Tracking the demand from China has been a big indicator of future price direction.

 

Copper Trading History

Copper has been around for nearly 10,000 years dating back to 8000 BC. In the 1800 Britan was the worlds largest copper producer and trader.

 

Copper Trading Basics

Copper has many uses and the primary producers are Peru, Chili, Indonesia, USA, China and Russia. Nearly 15 Million metric tonnes of copper are mined each year. With current copper prices of $7400 per tonne on the London Metals Exchange the LME total mined copper production represents nearly 111 Billion US Dollars per year in copper consumption, that is nearly $16 worth of copper for every one of the approximate 6.8 billion people on our planet. With copper currently near $3.50 per pound that is 4 pounds plus of copper per person per year.

 

To speculate or bet on the direction of the copper market (this can also be used as protection for producers and comercial consumers). You would trade copper using a futures contract on either of the two largest copper exchanges the Londondon Metal Exchange "LME" or the CME Group (formerly the COMEX division of the NYMEX).

One of the best ways to judge copper price direction is to use a trading algorithm to tell you the best time for you to buy and sell copper.

 

One of the ways professional traders will use to determine whether to go long or short the corn futures is to use a trend trading system. Many traders use TradeThink our proprietary trading algorithm to help show the trend direction of the copper market.

 

 

CopperTrading Systems

Because the value of a copper futures contract can be quite high (25,000 lbs) per contract. The total value of a single copper contract valued at today's price of $3.50 per pound has a total value of $87,500. The current margin is $7763 to control each contract. Most traders using a trading system to select potential trades will trade but a single contract. Larger traders can use TradeThink Legacy X Pro system to follow up to six copper contracts at one time.

 

Copper Grades

Grade 1 copper is what the CME Group uses for copper futures delivery via Electolytic Copper Cathodes Grade 1.

 

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