Base Metal Commodity Trading In Indian Perspective
Trade and Commerce play a key role in the field of financial opportunity. Commodity trading in India started much before many other countries. It’s being modified through ages. Previously the specific trading system was based on limited commodities. Now, at present days, there are multiple avenues in the field of commodity trading. Now, after stating a brief introduction about base metal, we will go straight to today’s main discussion Copper Price Chart And Analysis.
The base metal is totally inexpensive as well as most commonly found material. Uplifting price of copper indicates growth in an economy. The base metal is also known as the building blocks of infrastructure because of its usefulness. For example, in stainless steel, nickel is one of the major components. The earliest discovered metal was lead. Nowadays, the usage of copper material is vast in industrial and commercial place.
Indian Commodity Exchange
India has quite a promising future in the commodity market. There is both national and regional authorized commodity exchange. Commodity market investors generally follow the multi-commodity exchange (MCX). Besides this, there are exchanges like the National Commodity and Derivatives Exchange (NCDEX), Indian Commodity Exchange (ICEX), Universal Commodity Exchange (UCX) etc. Globally, there is a well-known exchange in the global commodity market, London Metal Exchange (LME) which is closely followed by MCX. A snapshot of world copper production is attached below:
Characteristics of Copper as a Base Metal
Thousands of years ago copper was discovered and first metal to be used by humans. Unlike the bullion, the particular base metal is relatively inexpensive. It’s various industrial application and usage make this metal valuable. The extraction methods of the metal are the open pit and underground mining. Between the two mining methods, the open-pit is the widely used metal. It has the reddish-brown color and the density is 8.92 gm. The melting point of copper stands at 1083 degree. Here, you can get the copper price support and resistance, live daily candlestick chart. This chart provides the live update of the copper price. The data is attached below:
Copper Price Support And Resistance
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Copper Futures Daily Candlestick Chart
The attached chart will automatically update as per the copper price movements. To get the accurate data, you need to manually refresh the chart often.
Usage of Copper
Plumbing, waterproofing, wiring, these are some of the important works in the construction of a house. Copper is broadly used for this purpose.
In order to generate electric motor, copper works as an excellent conductor.
For copper’s extraordinary electrical conductivity properties, it is used in the integrated as well as printed circuits boards. Besides this, the specific metal is also found in the vacuum tubes, microwaves etc.
For general housing purpose like cookware, bed rails, doorknobs, bed rails copper can be used. The base metal also has anti-bacterial properties.
In almost every industry, pieces of machinery are made of coppers wires.
Reason to Invest in Copper
- The newly emerging market of copper raises its demand high.
- The industrial revolution makes the machinery demand higher.
- As it is a good conductor of electricity, its substitute is not easily available.
Copper in the Indian Commodity Market
Coppers symbol in the periodic table is Cu. The main usage of Copper is in the electrical industry due to its high conductivity of electricity. Some other usages are in water pipes and making alloys like Brass (Cu+Zn).
Copper is traded under the base metal segment in MCX. Both Copper and Copper Mini is traded in MCX exchange.
The trading unit for copper in MCX is 1MT and a trading unit for the copper mini is 250 kgs. In other words, Copper’s lot size in MCX is 1000 and lot size for the copper mini is 250. For 1 rupee price movement traders gain OR lose Rs. 1000 and Rs. 250 in Copper Mini.
Copper is highly popular in MCX traders. You can use the opening range breakout strategy in Copper. Select heikin ashi candles on 15 minutes time frame and note the first 15 minute candles high and low. If any next heikin ashi candle breaks the high of the first candle of the day on closing basis open up a buy order. Similarly, if any next heikin ashi candle breaks and closes below the low of the first candle of the day open up a sell order.
Intraday traders can trade copper for a 2-3 points profit target and they can keep a protective stop loss of 1-1.5 points.
In Zerodha the positional margin requirement for Copper is around Rs. 21000 and intraday margin requirement is around Rs. 10500.