Nickel is a lustrous silvery-white metal best known for its physical property, such as resistance to corrosion, magnetic, and ductility. Due to the high melting point and catalytic properties, the nickel has high industrial demand. In the late 1800s, manufacturers discovered that the strength of alloys could be increased by adding nickel, after which demand for nickel rose dramatically. More than 300,000 products in the industrial sector, the consumer sector, and the aerospace sector use nickel.
Nickel is traded as a nickel futures contract in which two parties agree to exchange a fixed amount of nickel at a pre-defined price on or before the fixed date. A futures contract is one of the most common and popular ways to trade aluminum. Many investors diversify their portfolio by investing in nickel.
Nickel Contract Specification
Currency – USD
Spread – 0.003
Minimum trade size-100
Trading hours (GMT) – 23:00- 21:59
What influences the prices of Nickel?
The supply and demand have a massive impact on the prices of nickel. If demand increase, the prices will rise, and if supply increase, the prices will fall sharply. There can be various reasons for the increase in supply like development in technology which can enhance the nickel mining process; economic development can boost the consumption of nickel products. On the other hand, the discovery of a new substitute for nickel, which is cheaper and easy to transport, can decrease the demand for nickel.
The prices of nickel also get affected by several other factors such as interest rate decisions, economic growth, and geopolitical situations. Traders who speculate on the price movement of nickel should also be aware of other macroeconomic factors that can affect the price of nickel, such as the price of alternative base metals like iron and aluminum.
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 nickel will rise dramatically at some point in the future can cause a rally in copper price and vice versa.
Advantages of trading Nickel CFD with Capital Street FX
As most of the traders speculate on the price movement and won’t need nickel 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 Nickel 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