What are base metals? A base metal is an abundant chemical element of low economic
value. Base metals oxidizes or corrodes relatively easily. Base metals are consumable industrial metals. Therefore when the
economy slows, demand drops and so does the price of the commodity. Futures contracts on the regulated commodity exchanges
are a way to get positioned to trade base metals.
The COMEX Division base metals futures market stands
alone in its reliable price transparency and market safeguards that protect all participants. Trading is conducted as an open
auction, price discovery is straightforward and exclusive of brokerage fees, price dissemination is virtually instantaneous,
and, at the end of the day, all positions are marked-to-market and obligations settled in cash. There is no counterparty credit
risk since the Exchange and its clearinghouse, which is composed of some of the most highly regarded firms in the financial
services industry, stands on the other side of every deal.
Click here to contact a licensed commodity broker to discuss trading opportunities in the metals markets.