Spread Betting Answers:
1. How to Spread Bet on Copper?
At the moment the Copper Futures market, in this case the High Grade Copper (September) market, is quoted at $2.7910 - $2.7990 with Financial Spreads.
As with many metals markets, investors can speculate on the future value of copper. That is to say, traders can spread bet on the price of commodity to go up or down.
With the Copper (September) market, which closes on 25-Aug-09, you can spread bet on:
Copper to finish higher than $2.7990 on the closing date, or
Copper to finish lower than $2.7910 on the closing date
With this Copper futures market, you trade in £X per tick, where a tick is $0.0001 of the Copper price movement. Eg if your stake was £4 per tick and the Copper moves $0.0014 then that would be an £56 difference to your P&L.
P&L = £5 per tick x ($0.0014/$0.0001) = £5 per tick x 14 ticks = £56.
Copper Futures Example
So looking at an example, let's say the quote on a spread betting website gives the above spread of $2.7910 - $2.7990 and you have done your research and think that the metal will settle above $2.7990. In other words:
- You think the Copper will go up
- You decide you want to 'buy' the market at $2.7990 and you buy it for £2 per tick
- The value increases and so you let your bet run to the expiry date
- Copper closes at $2.8080
- You bought the spread at $2.7990
- P&L = ((closing price - opening level) / per tick) x stake
- P&L= (($2.8080 - $2.7990) / $0.0001) x £2 per tick stake
- P&L= ($0.009 / $0.0001) x £2 per tick
- P&L= 90 ticks x £2 per tick
- P&L= £180 profit
Of course, if the trade did not turn out as expected and had the price of copper fallen and finished at a lower level of $2.7895, then you would have made a loss rather than a profit.
- Price you bought the spread at $2.7990
- P&L = ((closing price - opening price) / per tick) x stake
- P&L= (($2.7895 - $2.7990) / 0.0001) x £2 per tick stake
- P&L= (-$0.0095 / $0.0001) x £2 per tick
- P&L= -95 ticks x £2 per tick
- P&L= -£190 loss
(Prices quoted as of 04-Aug-09).
2. Where can I Financial Spread Bet on Copper?
You can spread bet on Copper with any of the following companies:
Spread betting markets may also be available with other companies.
3. Where can I find real-time spread betting prices for Copper?
All of the above companies provide access to real-time commodities prices to their account holders.
Note that you may need to log into your account in order to see live spread betting prices for Copper.
4. Where can I find commodities candlestick charts for Copper?
A number of the spread betting companies offer a variety of charts, including candlestick charts. Note that you may need to open an account with the respective company in order to see the charts and/or have full access to real-time charts that you can manipulate. Spread betting accounts are subject to status, terms and conditions.
Candlestick charts are currently available with:
Charts may also be available from other spread betting companies.
Example commodities charts from Financial Spreads:
"Copper Spread Bets" last update by R Thomas, 09-Aug-2010
Warning: Financial spread betting carries a high level of risk. You can lose more than your initial investment or stake. Financial spread betting may not be suitable for all investors. Only trade with money that you can afford to lose. Make sure you fully understand the risk involved. If necessary, seek independent financial advice.
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