Copper Futures (HG) Recent Developments
- Copper futures open interest hit record highs 14 times so far this year, including an all-time high of 301k lots in February
- Open interest overall is up more than 26% YoY by the end of 2017
- Copper futures volume has increased more than 26% from 2016 to 2017
- The marketplace for Copper futures is divided among a diverse group of market participants.
Leverage Copper Liquidity Around the Clock No Matter How You Trade
- Volumes continue to increase across time zones – Copper is a truly global market.
- 99% of Copper volume is traded online – trading access has never been easier
- Copper accounts for 76% of the outright electronic global market share
What’s Behind the Copper Rally?
- Managed Money rushed to invest in copper reacting to $1 trillion fiscal stimulus package proposal by the new U.S. presidential administration in December 2016
- On-going disruptions of copper supply side caused by strike actions across largest copper mines in Chile and Peru
Benefit from Copper Margin Offsets with Significant Savings
- The initial margin charge on a Copper contract could be partially offset if you have the opposite position in another commodity contract cleared through the same FCM at CME Group.
- Copper could be offset with other liquid commodity contracts at CME Group, including not only other base and precious metals but also ferrous metals, energy and FX products.
Base Metals and Ferrous |
Margin Offsets |
ALI – Aluminum futures |
45% |
ZNC – Zinc futures |
45% |
TIO – Iron Ore futures |
45% |
ALA, ALB – Alumina FOB Australia futures |
30% |
AUP, EDP – Aluminum Premium futures |
20% |
Precious and PGMs |
Margin Offsets |
SI – COMEX 5000 Silver futures |
40% |
Crude Oil |
Margin Offsets |
MFF - Coal API4 futures |
30% |
Equities |
|
XAI - Industrial Select Sector Futures |
45% |
XAB - Materials Select Sector Futures |
45% |
FX |
Margin Offsets |
AD - Australian Dollar futures |
40% |
* Margins are subject to change. Above data as of January 24, 2018.
COMEX Copper Options – Best Instrument To Hedge Against Macro Uncertainty
- Instantly monitor prices, implied volatility and greeks in real-time on CME Direct Globex screen
- Explore the world of advanced Copper analytics with value- added QuikStrike tools
- RFQ functionality on CME Globex allows traders to electronically execute multi-leg and hedged options strategies for Copper.
Access the Global Copper market at CME Group
Independent Software Vendor (ISV) Codes
| Product Name | CME Globex/ Clearport | Floor | Bloomberg | Reuters | TT | CQG | Fidessa | SunGard |
| Copper futures | HG | – | HG1 Comdty | 0#1HG: | HG | CPE | HG | HG |
| Copper options | HX | HX | OMON <GO> | 0#HG+ | HX | CPE | HX | HX |
Learn more about Copper contracts.
For more information, contact the metals team
All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.
