Trading Copper
Copper is a global commodity with numerous applications in industry and is highly correlated with economic growth. Copper trading is frequently used by hedgers and speculators to protect or profit from future price movements. Copper is traded in a variety of ways, including futures, options, equities, and CFDs. Copper ETFs (exchange traded funds) such as CPER (United States Copper Index Fund) and JJCB can also provide exposure to the metal (iPath Series B Bloomberg Copper Subindex Total Return ETN). Accessibility is one advantage of copper trading.?
Copper is a soft malleable metal with gold and silver-like properties. Its main sources of demand are building materials, transportation equipment, and electronic products.
Copper is frequently associated with industrial growth, and thus with overall economic growth. Infrastructure, manufacturing, and construction are now major contributors to economic growth, which is heavily reliant on copper. Copper utilization (request) will in general reflect in copper cost, as an expansion popular is by and large followed by an expansion in copper cost, as well as the other way around. Copper is widely regarded as the king of base metals because it is the most widely used metal in both emerging and established economies.?
Copper price movements are heavily influenced by demand from emerging market economies such as China and India.
During times of economic growth, these countries demand large amounts of copper, which helps to raise the metal’s price. Alternatively, during economic downturns, when demand for copper falls, so does the price. When trading copper, traders should be aware of this dynamic.?