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Introduction To Copper Futures:


Copper is a ductile,malleable base metal having excellent properties of heat and electricity conduction.This is the most recycled base metal,makes it the most preferred material of choice.In terms of consumption it is at rank No 3 after,steel and aluminium. As this metal leads the base metal prices its also known as king of Base metals.

Application Areas:

1.Construction.

2.Electricity and Electronic industry.

3.Machine elements.

4.Trasport.

5.Manufacturing.

Leading Global Exchanges:

Exchange Product LotSize(MT)
LondonMetal Exchange Grade A Cathode 25
COMEX Grade 1 Electrolytic copper 25000 pounds
MCX Grade1 Electrolytic copper 1
Shanghai Exchange Standard Copper Cathode 5

 Copper Trading at Multi-commodity Exchange In India:

1.Trading period: 10 am to 23:30 /23:55 pm.monday to friday

Saturday : 10 am To 14:00 pm

2.Contract Months:Bi-monthly contracts.

3.Contract Expiry: Last day of contract.

4.Tick Size i.e. min.size with price fluctuates: 5 paise per kg.

5.Lot Size: 1 MT or 1000 Kg.

6.Maximum allowable open positions per individual:5,000 MT.

7.Prices takes clue from London Metal Exchange and varies accordingly.Being a global market there is no scope of local manipulation.

Profit-Loss Calculation:

Buy Price(Rs) Sell Price(Rs) LotSize Brokerage* Profit/Loss
380 385 1 MT Rs.180 Profit:4,820
390 388 1MT Rs.185 Loss: 2,185

*Brokerage rate changes from broker to broker.Calculated with assumption of rate 2 paisa per Rs100 transaction.

Copper Future market provides a great plateform for individuals to gain from the price volatility as well provides hedging opportunities to copper users against physical stock.So if your risk profile is good then do not forget to think about part-time earning opportunity.

 


Category: Commodities

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Information provided on this blog is for general purpose only & not investment advice.Please take advice of SEBI Registered Investment Advisors before taking any investment decision.
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