Trade Copper

Tight spreads and 24 hour trading of the spot copper price.

Copper Trading

Copper is not a precious metal like the other metals offered by ThinkForex, but has its own merits and opportunities for astute traders to leverage and build their edge in the markets. These benefits are outlined below:

  • 1. Trade the unique supply and demand conditions of copper. Copper is often cited being a key economic indicator, in that demand for copper tends to rise when economic activity and industrial production rises as well. This is because copper is so deeply rooted in energy production and transmission. Copper is the most conductive element in the periodic table, which is another way of saying that it is the most regularly used element for electricity transmission. Traders who wish to speculate on industrial production, electricity usage, or economic activity in general may find copper to be an instrument worth their time.
  • 2. Spread traders can trade the ratio between precious metals and copper. Precious metals are thought of as a store of value, while copper is associated with economic activity. Traders who have focused on understanding the demand factors for these metals, and the difference between the market for precious metals versus the market for base metals like copper, may find their edge in the marketplace in trading copper.
  • 3. Technical traders look for certain patterns to trade, and are typically agnostic to instruments so long as they have sufficient liquidity. As an instrument traded daily and used throughout the world since its discovery, copper is certainly sufficiently liquid. For technical traders, copper may thus be appealing if the patterns they favor appear.


And of course, copper has all the same benefits that any instrument ThinkForex offers: tight spreads, leverage, fast execution, and 24 hour availability.
 

Key Copper Trading Information

Margin Calculations

 
Margin Calculation (product price x volume x units per contract / leverage)
Example: $3.3000 x 1 x 2500 / 100 = $82.50
Leverage is 100:1 in this example
Copper moves in 0.0005 increments with a increment value of $1.25 per contract. The P&L of a Copper trade can be calculated by multiplying tick value, number of contracts, and market movement (Closing Price - Open Price x 2000)
In this example, the position 1 contract was closed at 3.3500.from a 3.3430 open. Market movement = (3.3500 – 3.3430) X 2000 = 14 pips P&L Calculation 1.25 x 1 x 14 = $17.50

CONTRACT SPECIFICATIONS

 
Contract Symbol COPPER
Contract Size 2500 oz
Increment Size 0.0005
Increment Value per contract $1.25
Trading Hours (GMT) 01:00 - 00:15 (Fri close 00:00)

Resources for Learning More About Trading Copper

Try the links below to get started with some basic education about copper:

Copper Alliance

Copper Supply and Demand Data

Economics of Copper

Use the links below to get started with demo or live trading copper.