Bear in mind, however, that with leverage, your possible profit or loss is calculated based on your full position size and can outweigh your margin amount significantly. Both are leveraged, meaning you’ll use a small initial deposit (called margin) to open a larger position. The trading method you’ll use will either be spread bets or CFDs. With trading, you’ll speculate on the price of copper or copper stocks without owning the commodity or shares outright. When deciding, it’s important that you do your research – we’ve outlined useful information here to get you started. Trading and investing are two different ways to take a position on copper stocks and ETFs. However, because profits and losses are calculated on your full position size and not your margin amount, these can outweigh your deposit significantly. This means you’ll put down a small initial deposit (called margin) to open a larger position. It’s also worth noting that both spread bets and CFDs are leveraged forms of trading. You’ll make a profit if you predict the copper price correctly and a loss if you don’t. With both, you can trade on either the current copper spot price or on copper futures, which means you’ll speculate on the price of copper on a predetermined date to come. If you want to speculate on the price of copper directly, not through copper mining stocks for instance, you can do so through derivative trading products like spread bets and CFDs. This means you can focus in on one or two copper stocks you’ve determined are right for you, but it also means you’ll be less diversified than if you invested in an Exchange traded funds (ETF). If you have a specific copper-related company in mind, which you’ve determined to be a good option for you based on fundamental analysis or technical analysis, you may want to invest in its shares. With ETFs, you can invest in a range of copper-related companies, or trade the copper industry generally, with a single position. If you want broad exposure to the copper industry through a number of stocks, you could consider copper ETFs. How to trade or invest in copper shares and ETFs 1 Although copper prices took a dive in early 2021, due to temporary production slowdown in Europe and China, they have by and large climbed since 2020, when Covid-19 pandemic disruptions to mining temporarily lowered the copper price. The copper industry is dominated by several key players, such as Corporación Nacional del Cobre of Chile (the country with the most copper reserves on the planet), Freeport-McMoRan, BHP, Southern Copper and Glencore.Īccording to BHP, demand for copper will likely double in the next 30 years. It’s then turned into its various known forms, including copper wiring, piping, circuitry and even consumer goods like house fittings and jewellery. These include construction, manufacturing of electronics, transportation and more.Ĭopper is mined from pits in its raw form (copper ore) before being crushed, roasted and smelted. More than just a shiny metal, copper is used in a number of activities. When we talk about the copper industry, we mean the sector that mines and refines the commodity.
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