Copper trading has been around since the ancient romans. Being mined in various parts of the world and dating back to 8,700BC, where we know of prehistoric copper pendants and today used more frequently in copper piping.
Mined in large pits, copper is an extremely useful material, it can conduct electricity and a trace material in all living things.
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Trade Copper with AvaTrade
Unlike most of its fellows metals, copper is not as rare as gold, silver or platinum, for example. Copper has been in use for thousands of years, dating back as far as 8,000 BC. Part of its popularity is the ability to melt it easily and use it in various industries in different ways. With AvaTrade copper CFD trading is a high-demand commodity, with many advantages:
- Copper and other metals available with competitive spreads
- Employ a leverage of up to on copper
- Meta trader 4 for manual, semi or fully automatic trading available
- Copy trading platforms including Zulu Trade and Duplitrade
- Outstanding multi-lingual customer service with dedicated account managers
- Trade around the globe with your mobile phone, tablet or web trading
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The Copper Market
The USA used to be the main copper minor, however today most of the world’s copper is mined in Chile. Other countries producing copper in large amounts are China and Peru. Copper is traded around the world, the main markets are the New York Mercantile Exchange (NYMEX), the Mumbai-based Multi Commodity Exchange (MCX), the Shanghai Futures Exchange (SHFE) and the London Metal Exchange (LME). The copper market is open from 22:00 to 20:59 GMT.
What Affects the Copper Price
Like most commodities, copper price changes based supply and demand. Copper is commonly used for different appliances, mostly for housing and electrical machinery. A decline in new house constructions can indicate a slower economy, which can result in a drop of copper prices.
Another factor is the supply itself. Should the supply from a region or country slowdown or even stop completely, it could greatly affect the copper market and change its price.
Copper is also used for different new green technologies such as environment friendly batteries and more. Green energies are on the rise as human kind is always searching for better solutions, and a growth in such technologies can bring about an increase in the price of copper.
There is also an emerging market demand for copper, mostly from China as they are the biggest consumers of copper. Known as the manufacturing hub of the world, China consume almost half of the world’s copper but do not have enough reserves. This situation gives rise to increasing the supply and global copper trade.
Copper CFD Trading Advantages
It would be safe to assume that most people wouldn’t have a lot of use for large amounts of copper. This is why they are traded for their contract for difference, or CFD in short. This means the trader does not buy or sell the actual instrument, rather trades on a contract with his broker, with the same prices and market movements as the real product. There are several advantages to trading CFDs:
Buying copper, much like any other metals, could be expensive. CFDs allow trader to employ leverage, meaning using only a small portion of the trader’s capital to open a position for a certain percentage of its value, and not the full amount. In the case of copper the leverage ratio is .
- Cost Effective
Not trading the actual instrument can save a lot of money on side expenses such as transporting, maintaining and storing it. This is why most of the metals, which require all these and more, are only used by its actual consumers.
- Easy to Drop
In case of a sudden large change of value, owners of the product will have to find a way to dispose of their resources in order to make a profit or avoid a loss. When trading the instrument’s CFD on the platform, however, all the trader needs to do is simply close his position.
Copper Trading With AvaTrade
AvaTrade invites you to trade copper, as well as many other commodities. With us you can receive copper market news, data, guidance and copper market tips. When choosing a broker for copper trading, AvaTrade comes as a natural choice – because of the experience, the regulation, safety of funds and all the other reasons AvaTrade is standing at the forefront of the industry. Join AvaTrade and trade over 250 instruments on a variety of platforms – manual and automated, and enjoy the benefits of trading with a leading broker!
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