Copper MCX: How to Trade in it?
A compound metal thought to be the oldest known commodity, copper has played a significant role in the global economy. The price of copper commodity is closely influenced by factors such as the state of the economy and supply. In the Indian stock market, copper is traded on the Multi-Commodity Exchange (MCX). There are two options in copper MCX trading standard and mini contract.
- Standard contracts: Available in the months of February, April, June, August, and November. Contracts represent 1 MT.
- Mini contracts: Available as launched and are usually of 250 kg of the metal.
What You Need to Do
The first thing you need is an account with a stock broker registered with the MCX. Once this is set up do find out what the brokerage terms and rates are. Some offer zero brokerage trades to qualified customers. After your account is activated, you can start placing trade orders to buy or sell as per the minimum trading quantity. Futures trading is margin based and so you will need to pay only around 5 to 20 percent of the value. This percentage is fixed by the exchange.
Copper Trading Strategies
Trading in copper requires a good deal of attention and the price needs to be monitored closely. The fate of the construction industry and the movement of emerging markets is what determines the price of copper. Watching for news in these sectors can help you plan your trades better and make profits. Other factors that can influence the price of copper include the emerging trends in the market as well as the behavior of other traders. Advisories and tips are offered by numerous brokerage institutions and analysts. But it is important to filter out the reliable ones from the rest.
Only good knowledge of the commodity market can prove helpful here.The availability of online commodity trading has further simplified the process and it is now possible to place trades at the click of a button. Just remember to square off positions before the contract expires failing which you will have to take physical delivery.