Copper and Base Metals Liquidity

Discussion in 'Commodity Futures' started by Iceman14, Aug 5, 2009.

  1. Iceman14


    I've always been interested how the trade in copper and other base metals works. I know precious has quite good liquidity via COMEX/CBOT, but from my research copper looks quite thin both on daily volume and OI.

    Is it possible to day-trade HG or is this more a position-traders market? Where do the commercial and physical players hedge(?): at COMEX or LME, maybe swaps? And the aluminum trade looks non-existent at the COMEX, so what's the story there?
  2. latidude


    Iceman, that is a fantastic question and I'm disappointed that it has gone unanswered. I wonder the same.

    I have noticed some interesting phenomenon in trading volume both on outrights and exchange traded calendars - volume tends to be 10 times as much on Fridays. Also, the majority of the open interest is on the December (Z) and March (H) contracts shortly after the March / May contract is when the contango begins to go into backwardation in the forward curve so I assume there is some seasonal considerations at this point. Can anyone please comment on this and Iceman's question?
  3. bump for the thread because I would like to know too..


  4. I used to trade copper spreads quite a bit, near months liquidity was awesome and margins were dirt cheap (100 a sprd) I haven't traded them for about a year though, interesting on the friday vol. thing. I have traded the outrights less than a handful of times, so I can't really help you there. Shagi would be a good guy to ask, I know he trades copper a lot.
  5. Banjo