Copper looks to be in backwardation. What do you think of shorting the near-by contract and go long a longer-dated contract?
don't take this the wrong way but if you have to ask, it is probably not a good idea to make this trade. Do you know why its in backwardation, how long it lasts, etc...
I don't take it the wrong way. I don't even have an account that would allow me to buy pit contracts. I just want to learn.
Seems somewhat arcane, will require extensive digging. No copper traders here apparently. Best of luck.
It's in backwardation most likely because of a supply issue. There is almost always a fundamental reason why front month is in such high demand, and unless you have some copper you can deliver it may not be worth the risk.
Throw a chart up see what the months you wish to trade look like. Just on basics, that trade is a bear spread and copper is in a bull run and as illiquid as an OTC sink sheet stock !!!!!! I think there is like 12 traders in that ring on the COMEX, maybe more. But take a look at it anyway. once again my 2c.....
Throw a chart up see what the months you wish to trade look like. Just on basics, that trade is a bear spread and copper is in a bull run and as illiquid as an OTC sink sheet stock !!!!!! I think there is like 12 traders in that ring on the COMEX, maybe more. But take a look at it anyway. once again my 2c.....