Are you planning to trade copper? Well, copper is regarded as one of the highly tradeable commodities that is known for having comprehensible chart patterns. It is worth to note that this investment commodity is priced in the United States dollar; hence the price of copper is largely determined by the current dollar status. Just like crude oil, gold, silver, and national gas trading, copper trading strategies involve fundamental and technical analysis. The prices of copper are high when the economy performs well since the demand for the copper mostly generates from construction. Let’s have a quick look at the reasons why people should consider investing in copper and what is the right way to trade this commodity.

The Working of Copper Trading

One of the major benefits of copper trading is its easy accessibility. As copper is a highly tradeable commodity, you can trade it through a wide range of platforms such as options, futures, and even on a spread betting platform. The malleability and softness are two of the major properties that make copper trading just like gold and silver trading. The commodity generates a majority of its demand from electronic products, building, equipment, transportation, and construction. Besides accessibility and malleability, copper is known for its high heat-resistance properties. Being a good conductor of electricity, this commodity has a huge demand in industrial and commercial applications.

The price of copper is mainly affected by its demand in the developing sectors such as India and China. The commodity’s price tends to go up when the emerging market demand for copper increases. On the contrary, the price of copper declines during the economic recession period since its demand falls. Traders should stay updated about the demand for copper in the emerging markets to predict the future price of the same. Just like in other trading commodities, traders prefer to use fundamental and technical analysis in order to figure whether the price of copper will go up or decline in the future. Once you have made the predictions, you can decide whether copper trading can benefit you or not. This way, creating the right copper trading strategy can be helpful for users in trade risk management.

Also Read: 5 Unpredictable Crude Oil Facts You Must Know

Trading Copper with Fundamental and Technical Analysis

Traders who rely on fundamental and technical analysis for copper trading may have a diverse trading strategy based on the changing market condition. In the simplest terms, the market condition can be found by determining whether the current market is trending or in a depression period. The people who use technical analysis will always put the market condition first before forming a strategy or making a decision.

It is not rocket science to know that the price of copper rises in the trending market because of its increased demand in the construction, electrical, and industrial fields. The traders should aim at forming the trading strategies that involve the use of oscillators and trend lines that help you get the right to buy and sell signals. In addition to trend lines and oscillators, there are other copper trading signals that traders following technical analysis can use. This includes slow stochastic, MACD (moving average convergence divergence), and moving averages.

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Consolidating Markets

The consolidating market usually calls for a different copper trading strategy. In consolidating the market, the individual will either want to buy copper at a previous low or sell the commodity at the previous high. Consolidation period isn’t exactly the depression period, but it usually ends up to the downside.

Copper Trading Strategies for Beginners and Professionals
  • Before applying the specific copper trading strategy, a trader should consider the current market condition. It is worth to note that your trading strategy may vary in consolidation and trending markets.
  • As copper is priced in the US currency, the changes in the rates of dollars have a major impact on prices of copper.
  • Another major factor that affects the copper price is its demand in developing economies such as Brazil, China, and India. The demand for the commodity in emerging sectors can impact copper rates in the long run. Therefore, the trader must be familiar with the growth factors of such markets to make a sound decision.
  • The better you manage your copper trading risk, the higher the chances of profitable trading. It is highly recommended to risk not more than 5% of your capital on all open copper commodities.

So, what are you waiting for? This malleable and accessible metal can make an ideal commodity for trading. If you are planning to invest your savings in copper trading, read on this post again and follow the strategies to get better results. Don’t forget to use trend lines, oscillators, and other technical analysis strategies to get accurate buy and sell signals. Good Luck!

Also Read: Top Strategies for Trading Natural Gas – Gill Broking

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It is, therefore, important to learn both the pros and cons of intraday trading to get a better idea of how this market works and how exactly you can grow your money. In this post, we will walk you through a few advantages and disadvantages of intraday trading. So, keep reading to learn more.

• Beware of fixed/guaranteed/regular returns/ capital protection schemes. Brokers or their authorized persons or any of their associates are not authorized to offer fixed/guaranteed/regular returns/ capital protection on your investment or authorized to enter into any loan agreement with you to pay interest on the funds offered by you. Please note that in case of default of a member claim for funds or securities given to the broker under any arrangement/ agreement of indicative return will not be accepted by the relevant Committee of the Exchange as per the approved norms.
• Ensure that pay-out of funds/securities is received in your account within 1 working day from the date of pay-out.
• Be careful while executing the PoA (Power of Attorney) – specify all the rights that the stock broker can exercise and timeframe for which PoA is valid. It may be noted that PoA is not a mandatory requirement as per SEBI / Exchanges.
• Register for online applications viz Speed-e and Easiest provided by Depositories for online delivery of securities as an alternative to PoA.

• Do not keep funds idle with the Stock Broker. Please note that your stock broker has to return the credit balance lying with them, within three working days in case you have not done any transaction within last 30 calendar days. Please note that in case of default of a Member, claim for funds and securities, without any transaction on the exchange will not be accepted by the relevant Committee of the Exchange as per the approved norms.

• Check the frequency of accounts settlement opted for. If you have opted for running account, please ensure that your broker settles your account and, in any case, not later than once in 90 days (or 30 days if you have opted for 30 days settlement). In case of declaration of trading member as defaulter, the claims of clients against such defaulter member would be subject to norms for eligibility of claims for compensation from IPF to the clients of the defaulter member. These norms are available on Exchange website at following link: NSE, MCX

• Brokers are not permitted to accept transfer of securities as margin. Securities offered as margin/ collateral MUST remain in the account of the client and can be pledged to the broker only by way of ‘margin pledge’, created in the Depository system. Clients are not permitted to place any securities with the broker or associate of the broker or authorized person of the broker for any reason. Broker can take securities belonging to clients only for settlement of securities sold by the client.

• Always keep your contact details viz. Mobile number/Email ID updated with the stock broker. Email and mobile number is mandatory and you must provide the same to your broker for updation in Exchange records. You must immediately take up the matter with Stock Broker/Exchange if you are not receiving the messages from Exchange/Depositories regularly.

• Don’t ignore any emails/SMSs received from the Exchange for trades done by you. Verify the same with the Contract notes/Statement of accounts received from your broker and report discrepancy, if any, to your broker in writing immediately and if the Stock Broker does not respond, please take this up with the Exchange/Depositories forthwith.

• Check messages sent by Exchanges on a weekly basis regarding funds and securities balances reported by the trading member, compare it with the weekly statement of account sent by broker and immediately raise a concern to the exchange if you notice a discrepancy.

• Please do not transfer funds, for the purposes of trading to anyone, including an authorized person or an associate of the broker, other than a SEBI registered Stock broker.

• Do not deal with unregistered intermediaries (who are not registered with SEBI/Exchanges).

Names and contact details of all Key Managerial Personnel including Compliance Officer

Sr. No.Name of the IndividualDesignationContact NumbersEmail Id
1 Charanpreet GillCEO/
2 Charanpreet GillWhole Time
3 Charanpreet GillCompliance
4Manpriya GillDesignated
5Kewal GillDesignated

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