What are copper futures?

As with any other commodity, even those dealing with the purchase and sale of futures copper, basically bet that the future price of this product will rise or fall. The buyer agrees to pay a fixed price in the future, when the payable contract comes. The seller agrees to sell at this price. If the price increases, the buyer will make a profit because he has arranged a copper purchase for lower than the passage level. If the price drops, the seller has the advantage of the seller. In practice, however, only a small percentage of these futures on copper futures is fulfilled. Copper futures speculators are always ready to buy and sell these contracts to other speculators in the hope that the price of copper will fluctuate in their favor. This risks each other and the possibility of profit.

There are factors about copper make it easier to watch than many other commodities. Because it is industrial metal best known for water accessories and its ability to perform electricity, it is closely bound to the construction industry. The more houses and commercial structures withE builds, the more copper is required, thus increasing the price on copper futures.

Of course, watching world markets with copper futures is not that easy. For example, China became a building boom in front of the 2008 Olympic Games, although the demand for copper has decreased in the US and Europe. Also, the production of copper in key mines in Chile, Peru and South Africa - all potentially volatile places - can affect the price as well as lower oil prices when high production creates excess.

Another unique factor in copper is that it is ideal for recycling. In the United States, this triggered a mini wave of crime with copper -gauge in all its forms is torn and sold, but also serves as a brake of rising prices. According to the Association of Copper Development, more copper is obtained and returns to operation in the United States than derived from freshly mined ore.

Copper prices in 2008 were a permanent decline in 2008M, which is assumed that it will continue in 2009. This in itself will not have a cold effect on the purchase and sale of futures copper. The question of how far these prices will go, it provides the necessary secrets and also the opportunity to profit.