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Copper Price Hedging

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Copper Hedging

A hedger in the copper market is an individual who uses the futures market to offset price risk when intending to sell or buy the actual copper. Hedging is possible because the copper cash prices and copper futures prices tend to move in the same direction. However, the difference between the cash price and the futures price may narrow or widen. The change in the difference between the cash price and the futures price is called basis risk. Because of the changing basis no hedge can be perfect.

Where can you hedge copper? Copper can be hedged on the New York Mercantile Exchange (NYMEX). The NYMEX offers a competitive and transparent market place to engage in efficient hedging strategies.

How can you hedge copper? If you are interested in hedging copper please contact us. One of our experienced copper traders will be happy to give you a call to discuss hedging strategies with you.

A Guide to Metals Hedging

Click on the link above to download a very informative .pdf brochure entitled "A Guide to Metals Hedging.” It was published by the New York Mercantile exchange. This is a must read guide for any novice or advanced trader considering a hedge in the copper market using exchange traded copper futures and options.

Click here to contact a commodities broker with experience in the copper market.

Commodity trading is not suitable for everyone. The risk of loss in trading can be substantial. The risk of loss in trading can be substantial. This material has been prepared by a sales or trading employee or agent of Van Commodities, Inc. and is, or is in the nature of, a solicition. This material is not a research report preparfed by Van Commodities, Inc. Research Department. Please view our Risk Disclaimer.

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