Thursday 5 January 2012

Copper trading tips and Guide : Future & Options

Copper futures: Copper, man, whose opportunities to know a product that directly reflects the state of the global economy, one of the oldest objects. Iron and aluminum, and industrial machinery used in construction and manufacturing industries, especially after the cycle is the world's third most widely used metal. Mining techniques to extract maximum profit from the metal depends on cost-effectiveness, and supply management organization in the state, particularly in copper mining, is sensitive to the political situation.

Copper was first worked about 7,000 years ago. The softness, color, and natural appearance, easily available and antique utensils, tools and weapons that can be arranged. Five thousand years ago and a new era of man-made production of bronze, copper alloy with tin know that. Copper was established as a matter of commercial value.

In the 20th century, new mining and smelting technology, the United States, it is possible to process low grade ore, copper markets, resulting in a dramatic expansion of the developed world.


Copper, copper futures traded on the exchange:

In the New York Mercantile Exchange, Commodity Exchange in August 1994 with the merger, Inc. became the world's largest physical commodity exchange.

COMEX Division copper futures markets, price transparency and market to protect all participants to stand alone and reliable protection for you. There is no exchange, and its Clearinghouse, financial services companies in the field of customer credit risk, some of the most highly regarded, each transaction represents the other side.

Furthermore, all relevant trading volume, open interest, an accurate, reliable, and timely statistical information provided, including the transfer of shares in easier fashion warehouse.

Security, subtle, complex systems, market participants and more spontaneously - without counter market manipulation and other foreign markets and a guarantee against defaults that are equally applicable.
Copper futures: Why Trade COMEX Division copper futures and options?

Creating a rewarding opportunity to benefit from fears of possible price changes.

COMEX Division offers businesses a number of advantages:

Contracts are financial instruments that are standardized by quality and quantity of liquid

Trading and risk management provides the ability to market opportunities.

COMEX division, copper prices are widely and immediately worked with the world reference price, are disseminated.

COMEX Division markets allow hedgers and investors tend to trade anonymously through futures brokers.

Depth distribution of basic goods market contract or receipt should be allowed to deteriorate easily.

If futures contracts are rarely required for the delivery and distribution, performance, of course, is used. Operations are executed on the exchange without counterparty risk.

Copper futures and options contracts, and some of the most respected names in banking and financial services industries, including the support of a strong financial system, COMEX Division clearing members, to support contract performance.

Exchange secure, fair and orderly markets to fund its aggressive defense and provides monitoring processes.

Copper futures

The internal distribution of goods is less than 1% of all metals futures contracts are sold each year as a result. Instead of the contracts before they mature, traders generally offset their futures positions. Offset the initial cost of buying or selling profit or loss is realized represents the difference between.

COMEX Division high grade copper futures trading and deliveries in the current calendar month for the next 23 months is continuing.
Copper futures options

Due to the nature of the global metal markets, their price may be volatile. Serious adverse price movements in the metal industry and other commercial markets for hedging against the uncertainty in the stock price had learned to cope. There are potential future, the primary risk management tool among the options when they are versatile, economical trading strategies open to a host.

Copper futures options on offer:

Buyers pay a premium option to reduce power losses.

Against an adverse price direction without foregoing the benefits of favorable price movements is the ability to hedge cash and futures positions.

Cost and availability of insurance risk management degrees at various levels of security.

Act aggressively or conservatively on the visual direction and volatility of copper prices is a way for businesses and investors.

Using a combination of options or futures contracts or copper updates

, no risk strategies, time horizon, or find the idea to cover the costs.

COMEX Division trading is selected for each of the following contract months: March, May, July, September and December last year. So for three months, business has always listed a series of months. Twenty-four months to 24 months in July or December copper options listed. At the end of American style options can be at any time.

Call options are there, and there are two types of points. Call option on a futures contract holder the right but not obligation to buy. Conversely, a put gives the right holder is responsible for the future to sell, but no. Premium is an option to buy or sell at any price.

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