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And how you can start trading socialbookmarkingfacts.info to +15, Markets · Trusted & FCA-regulated · Founded in Types: Over 40 Forex Pairs, Germany 30, FTSE , Shares - 24 Trading*, Wall Str. Detailed financial information on Nickel Futures. Live price charts, forecasts, technical analysis, news, opinions, reports and discussions.
Construction and infrastructure could represent a very large percentage of future nickel demand. The United States is planning large-scale infrastructure projects to replace dilapidated bridges, airports and transportation systems.
Most of these projects will require large quantities of metals including nickel. A global recession could weaken Chinese demand and put infrastructure plans on hold. Overproduction of the metal or increased stockpiling by China could create a supply overhang on the market and send prices lower. Global economic or political turmoil could strengthen the US dollar and weaken demand for commodities.
Many analysts have a dour view of the nickel market. They cite overproduction from major producers Indonesia and the Philippines as reasons for their pessimism. They will be close to running out of wiggle room in terms of cutting costs.
We need to see some reasonably sized refined capacity cutbacks to restore prices and confidence back to the market. Other experts agree that the current economic fundamentals of the nickel industry are unsustainable.
Consultant Wood McKenzie notes that half of global nickel miners now operate at a loss, while Citi recently informed its clients that it sees little chance for a rally in prices in the short, intermediate or long run. Investors have several options for gaining exposure to nickel prices: Physical nickel bullion such as bars or coins is the most direct way to invest in nickel. However, investing in bullion requires a secure storage facility. Ultimately, the cost of this storage and the low value-to-weight ratio could make holding physical nickel an impractical proposition.
The LME trades a contract on nickel that is a minimum of Each contract represents 6 metric tons of nickel and is quoted in dollars. Futures are a derivative instrument through which traders make leveraged bets on commodity prices.
If prices decline, traders must deposit additional margin in order to maintain their positions. At expiration, the contracts are physically settled by delivery of the metal. Investing in futures requires a high level of sophistication since factors such as storage costs and interest rates affect pricing. Options are also a derivative instrument that employs leverage to invest in commodities.
As with futures, options have an expiration date. However, options also have a strike price, which is the price above which the option finishes in the money. Options buyers pay a price known as a premium to purchase contracts. An options bet succeeds only if the price of nickel futures rises above the strike price by an amount greater than the premium paid for the contract.
Therefore, options traders must be right about the size and timing of the move in nickel futures to profit from their trades. These financial instruments trade as shares on exchanges in the same way that stocks do. There are currently two exchange-traded funds ETFs that invest in nickel futures:. There are many publicly traded companies that have some exposure to nickel prices. While investing in companies can be a leveraged way to gain exposure to nickel prices, many of these companies have significant exposure to other metals and commodities prices.
One way to invest in nickel is through the use of a contract for difference CFD derivative instrument. CFDs allow traders to speculate on the price of nickel. The value of a CFD is the difference between the price of nickel at the time of purchase and its current price. Some regulated brokers worldwide offer CFDs on nickel. Customers deposit funds with the broker, which serve as margin. The advantage of CFDs is that traders can have exposure to nickel prices without having to purchase shares, ETFs, futures or options.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Contents Why is Nickel Valuable? How Is Nickel Produced? Nickel Trading and Investing Methods Compared. Deposits are generally found in varying depths just below the surface.
Mining Method Miners sink vertical shafts into the ground and drive horizontal tunnels into the ore. Large equipment excavates the earth and removes the ore bodies. Cost of Mining Labor-intensive and expensive to extract Less expensive since mining occurs at the surface.
A particular variety of stainless steel that contains significant quantities of nickel is austenitic steel. Get the insight that matters, direct from our team of dedicated experts — market news, trading opportunities and more. You could be set up and trading in three minutes with these simple steps. We can usually verify your identity immediately.
Or, get comfortable using our platform in a risk-free environment with a demo account. Tax law may differ in a jurisdiction other than the UK. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit.
All trading involves risk. Past performance is no guarantee of future results. The information on this site is not directed at residents of the United States, Belgium or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
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Copper is classified as an industrial metal commodity. It is mined from the ground in various forms such as Sulphide ore. Copper is a component of many different alloys such as Bronze. Copper has a number of medical and industrial uses.
Due to its very good conducting properties, copper is used in making electrical wires. It is a component of many reagents used in medical laboratories for a number of biochemical tests. In historical times, it was used to produce coins. In , China consumed 9,, metric tonnes of copper, surpassing consumption of copper in Europe, USA and Japan combined.
Copper consumption by region. A contracting Chinese economy connotes a slowdown in manufacturing and therefore lesser demand for copper, which could signal a fall in prices.
Therefore, trends in construction can also be used to predict the price of copper. Trading decisions are usually based on the direction of shift of any of these fundamental influences. The most common financial instruments for trading copper are: The most popular traded form of copper is high-grade copper, usually marked as HG. The active months for the futures contract is the month which follows the present month. Once the contract expires, the active month now converts to the spot month. For instance, the copper contract currently being traded is represented as follows:.
To illustrate the similarities and differences in how copper is traded as a futures asset or as a CFD instrument, we will look at the contract specifications on LCG Brokers for the copper asset. Trading copper as a CFD does not involve actual delivery of the commodity.
This is why most CFD copper trading is done on online exchanges. What the trader aims to do in copper CFD trading is to purchase contracts which will be settled on the basis of differences in the price of the asset between trade entry and trade expiry.
Futures trading in copper is mostly done on physical exchanges and also involve physical delivery of the commodity such as The ICE exchange. Here are the contract specifications for Copper as a traded asset with LCG. It is important to track these months as they signify the end of old contracts and start of new ones.
Any open trades on the expiring contracts will be automatically closed and trades settled in profit or loss.
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Traders who want to invest in nickel should consider purchasing the commodity along with a basket of other commodities that includes other base metals i. Professional clients can lose more than they deposit.