Copper Futures and Options Trading - COMEX
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Copper is widely considered as one of the key cyclical commodities, given its extensive usage in construction, infrastructure and an array of equipment manufacturing. The biggest end-use is for the production of cables, wiring and electrical goods because of its excellent electricity conducting properties. The construction sector is the second largest user of copper, for plumbing, HVAC and building wiring applications.
Although found in abundance and widely extracted as well as recycled, the copper value chain is quite capital intensive. This makes the market susceptible to supply-side constraints, and therefore, volatile price fluctuations.
Copper’s importance in world markets and responsiveness to global economic events make our high-grade COMEX copper futures and options contracts important risk management tools for commercial interests, as well as a potentially rewarding opportunity for investors who wish to participate in this market.
Copper futures are hedging tools that offer price mitigation opportunities to a range of copper market participants. They also provide global price discovery and opportunities for portfolio diversification, as well as:
- Extensive trading opportunities, as prices are sensitive to cyclical industries such as construction and industrial machinery manufacturing, as well as to political situations in countries where copper mining is government-controlled
- The benefits of central clearing, including guaranteed counter-party credit and segregation of customer funds
- Price transparency, giving all market participants equal access while maintaining anonymity in all bids and offers