Copper Futures are standardised, Exchange Traded Derivatives Contracts that give investors the right to buy or sell the underlying Commodity at a fixed price on a future date. In essence, this product exposes local investors to the international copper market through referencing benchmark settlement prices as determined on the New York Mercantile Exchange (NYMEX) through its Commodity Exchange (COMEX) division, a subsidiary of the CME Group. Contracts are priced and settled in rands and can easily be accessed via JSE Commodity Derivatives and Equity derivatives members.
Copper Futures are hedging tools that offer copper price mitigation opportunities to a range of market participants. The contracts can also be used by speculators hoping to make a profit on short-term movements or benefit from the spread opportunities between the local and international market.
To access Copper Futures and Options, investors need to register as a client with
an authorised member firm, deposit the required initial margin and sell or buy according to their needs. To access this product, contact one of the commodity derivatives members