aluminum

ALUMINIUM INVESTING

Trading Aluminum

Aluminum is silvery-white metal best known for its physical properties, which make aluminum one of the key engineering materials. Aluminum is used in homes, automobile trains, aero planes, phones, and computers because of which it has high industrial demands, especially in developing countries. Aluminum also acts as a barometer for the manufacturing economy. As manufacturing is an important part of the nation’s GDP, especially in developing countries.

Aluminum is traded as an aluminum future contract in which two parties agree to exchange a fixed amount of aluminum at a pre-defined price on or before the fixed date. A future contract is one of the most common and popular ways to trade aluminum. Many investors diversify their portfolio by investing in aluminum.

Aluminum contract specification

Instrument – Aluminum

Currency – USD

Spread – 0.003

Minimum trade size-100

Margin -2.00%

Trading hours (GMT) – 23:00- 21:59

What influences the price of Aluminium?

Mostly the prices of aluminium are driven by Supply and Demand. That’s why many investors believe that betting on aluminium means betting on global growth. If the global economy improves and growth accelerates the demand for industrial metals such as aluminium rise as a nation needs aluminium for construction projects, railway projects, which will cause the aluminium, price to rise. If the global economy does not perform the demand decreases, send aluminium prices lower.

 

Overproduction of aluminium can also impact the price of aluminium as 8% of the earth’s core mass is made up of aluminium. Aluminium is the third most common metal found on earth, so it does not belong to the rare metal group such as gold and silver.

The prices of commodities, including aluminium, are affected by the US Federal Reserve’s monetary policies as a stronger US dollar is usually not good for commodity prices. If fed turns hawkish on their monetary policies, the US dollar will rally due to which commodities, including aluminium, may suffer.

 

The other key factor that can influence the price of aluminium is the market sentiments. Any news or belief that indicates that the demand for aluminium will rise dramatically at some point in the future can cause a rally in aluminium price and vice versa.

 

Advantages of trading Aluminium CFD with Capital Street FX

As most of the traders speculate on the price movement and won’t need aluminium in physical form. This is why the most useful instrument for traders in the contract for difference (CFD). This allows traders to buy or sell without owning the underlying instrument. It also gives freedom to trade a particular market from either side i.e., and a trader can go long or short according to his strategy. CFD is a very cost-efficient instrument. The brokerage on CFDs is very low.

 

Why trade Aluminium CFD with CAPITAL STREET

  • BROAD RANGE OF MARKETS- Access to the popular commodities markets, including energy, metal, and agricultural products.
  • CSFX offers you our stat of the art platforms and range of trading tools
  • Trade using Margin- Get greater exposure to the marketplace with a small deposit and spread your capital using margin.
  • Automate your trade facilities and direct access to the market
  • Safety of funds