Trading Copper Oil
Copper trading has been going on since ancient times. It is one of the popular metal commodities in the world. Copper is essential as it is an extremely useful material which is used in piping and has huge industrial demand as it is a good conductor of electricity. The copper is less valuable than gold, silver, and platinum because it is available in abundance and can be melt easily and used it in different ways.
Copper is traded as a Copper futures contract in which two parties agree to exchange a fixed amount of copper at a pre-defined price on or before a fixed date. A futures contract is one of the most common and popular ways to trade copper. Some of the most important copper exchange around the world is the New York Mercantile Exchange (NYMEX), the Multi Commodity Exchange (MCX), and the London Metal Exchange (LME).
Copper Contract Specification
Instrument – Copper
Currency – USD
Spread- 0.003 over the market
Minimum trade size- 100
Margin – 2.00%
Trading hours (GMT) – 23:00-21:59
What Influences the Price of Copper?
Mostly the prices of copper are driven by Supply and Demand. The price fell when suppliers extract and transport more copper or demand for the good that require copper decreases while the prices of copper rise when suppliers are not able to fulfill the demand for copper. The prices of copper also get affected by several other factors such as interest rate decisions, economic growth geopolitical situations, and technology. Copper is the third most widely used metals after iron and aluminum because of its physical properties like conductivity, ductility, etc.
Traders who speculate on the price movement of Copper should also be aware of other macroeconomic factors that can affect the price of copper, such as the price of alternative base metals like iron, aluminum, and nickel.
The other key factor that can influence the price of copper is the market sentiments. Any news or belief that indicates that the demand for copper will rise dramatically at some point in the future can cause a rally in copper price and vice versa.
Advantages of trading Copper CFD with Capital Street FX
As most of the traders speculate on the price movement and won’t need copper 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., 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 Copper 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