Copper futures are hedging tools that offer copper price mitigation opportunities to a range of market participants. They also provide global price discovery and opportunities for portfolio diversification, as well as:
Extensive trading opportunities, as copper prices are sensitive to cyclical industries, such as construction and industrial machinery manufacturing, as well as to political situations in countries where copper mining is government-controlled
The benefits of central clearing, including guaranteed counterparty credit and segregation of customer funds
Copper price transparency, giving all market participants equal access while maintaining anonymity in all bids and offers
Things to know about the contracts:
Physically delivered
Block-trade eligible
Can be traded off-exchange for clearing only through CME ClearPort