The basics of trading metal commodities daniels trading gas 78 industries

An array of live futures contracts for precious and base metals are offered by the CME Group. Gold, copper, and silver are the most popular in terms of daily traded volumes. Platinum, aluminium, steel, and even uranium are less-frequently traded exotic offerings. Whether a trader is diversifying a portfolio or limiting production risk, buying or selling a futures contract related to metals can be an ideal method of achieving any number of objectives. Gold

Around the globe, gold is synonymous with value. It has served as a mode of exchange for more than 2,000 years, with origins dating to 550 B.C. In modern times, gold has been used as backing for various international currencies, including the U.S. dollar.

Gold plays an important role in the world of finance because it’s a trusted safe-haven. During times of conflict or market turbulence, metal investors prefer holding gold instead of other assets. The gold pricing outlook can be a complex mix of prevailing financial market conditions and currency valuations, as well as current supply levels.

Copper is classified as a base metal, meaning it’s not considered precious. However, copper is valuable due to its function as an electrical conductor and overall versatility. Copper is used extensively in electrical wiring, equipment manufacturing, and coinage.

Copper futures are normally the second-most frequently traded metal on the CME Group exchanges. Daily volumes typically eclipse 125,000, drawing the interest of producers and speculators alike. Here are the contract specifications for CME copper: Symbol

At $12.50 per tick, copper is more capital intensive than the full-sized gold contract. Futures margins are typically higher, thus the CME offers E-mini copper to traders who desire less exposure. The copper price outlook is dependent upon cyclical industries, such as manufacturing and new home construction. Silver

The least traded of the big three metals, silver live futures average a volume in the neighborhood of 100,000 contracts per day. Portfolio diversification and production hedging are common uses. The silver price outlook relies greatly upon the global financial environment and current supply levels. Below are the specifications for the CME silver contract: Symbol

Perhaps the least attractive attribute of the full-sized silver contract is the $25.00 per tick value. Small negative moves can prove costly, 2.5 times that of gold. The large tick value and limited market liquidity are factors that exclude many retail participants. As an alternative, the CME Group offers an E-mini silver contract to lessen the financial commitment. Trading Metal Commodities

The metal commodities from the CME Group include something for everyone. Whether you are looking for ways of hedging risk or of implementing any variety of day trading strategies, metals may be an ideal way of achieving your market-related goals.

As with most things, trading metal futures involves a learning curve. A great place to start is a free consultation with a futures industry professional at Daniels Trading. In a short time, DT’s team of dedicated market veterans can help shed some light on the CME Group metals offerings.

This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.

You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.

This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.

You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.