Zinc is the fourth metal commodities after iron aluminium and copper. The physical properties of zinc make it a valuable base metal. It is used to make galvanized steel, different alloys and other zinc product. It is also used for making hardware, electrical etc. Investors like to invest in zinc for various reasons. Many investors invest in zinc to bet on global economic development while some use it as an instrument to beat inflation. Many investors use it to achieve greater diversification.
Zinc is traded as a zinc future contract in which two parties agree to exchange a fixed amount of zinc 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 zinc. Many investors diversify their portfolio by investing in zincZinc contract specification
Instrument – Zinc
Currency – USD
Spread – 0.003
Minimum trade size-100
Trading hours (GMT) – 23:00- 21:59
What influence the price Aluminum?
Mostly the price of zinc is driven by supply and demand. If the global economy is strong consumers will consume more and demand for zinc will rise causing a rise in the price of zinc but if the global economy slowdowns the demand for zinc will decrease which will force zinc prices to fall. Because of this, many investors believe that betting on zinc means betting on global growth. The demand of for these base metals such as zinc is higher in developing counties such China, India as they need more zinc to fuel industrial growth, construction projects rail projects causing a rise in the prices of zinc.
The prices of nickel also get affected by several other factors such as interest rate decisions, overproduction, and geopolitical situations. Traders who speculate on the price movement of zinc should also be aware of other macroeconomic factors that can affect the price of zinc and also the price of alternative base metals like iron and aluminium.
The other key factors that can influence the price of zinc are market sentiments. Any news or belief that indicates that the demand for zinc will rise dramatically at some point in the future can cause a rally in zinc and vice versa.
Advantages of trading zinc CFD with Capital Street FX
As most of the traders speculate on the price movement and won’t need zinc 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 CFD is very low.
Why trade zinc 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