A copper futures contract is a tradable instrument for the purchase and delivery of 25,000 pounds (standard) or 2,500 pounds (1/10 micro contract) of copper. Each copper futures contract has a unique set of contract specifications that are set by the futures exchange.
Trading copper futures trading involves an agreement between a buyer and seller at a specified price in a contract that will expire on a specific date. Copper is trading on the CME Globex systems with transparent pricing, orders, and positions.
Trading copper futures contracts has many advantages, one of which is direct market access for speculating on the price movement of copper. Copper futures provide good liquidity virtually 24 hours a day, lower trading capital requirements, and uncorrelated diversification. Copper futures can also offer traders more trading opportunities and flexibility over mining stocks, CFDs, and ETFs with their many limitations.
Copper futures are traded on a well-regulated exchange where orders are matched and cleared on a fair and level playing field with full price and order transparency. Traders can place buy and sell orders through their broker to enter or exit a position virtually 24 hours a day in the copper futures market.
Yes, you can trade copper futures with NinjaTrader. NinjaTrader is an industry-leading futures broker offering low commissions, low margin rates, and safety of your account funds. With NinjaTrader, you can trade dozens of the most actively traded futures markets in the world including the copper futures contract.
Like every futures contract, the primary risk is that the price of the copper futures will go against the trader’s position. Mining sector news and government reports related to supply and demand, or storage and exploration can all have a significant effect on the price of copper futures.
Economic activity from the global copper industry has a significant impact on the world economy. With its wide use in public and private construction, electronics, and a multitude of industrial and manufacturing applications, the price of copper is a vital economic indicator worldwide.
Copper (CU) is a reddish-brown chemical element which is soft and malleable with very high thermal and electrical conductivity. Copper is one of the few metals that occur in nature in a usable form instead of needing to extract it from an ore. Copper has been used by humans for at least 10,000 years. Copper and tin are combined to make bronze, which was a significant technological leap almost 5,000 years ago. The Statue of Liberty is covered in 31 tons of copper. It was used for its durability and beautiful green patina that has formed over time.
Approximately 20% of all copper produced each year is used in electrical wiring, which does not include its use in other building construction. Around 30% of all copper utilized each year goes into plumbing, heating, air conditioning, refrigeration, and roofing. An electric or hybrid car can include as much as 180 pounds of copper.