After our successful run up with “coffee” $KCN6 we will be going for another futures trade which is “copper” or HGM6 at the Commodities Exchange (COMEX) in New York. Just like any other futures contract HGM6 has its own specifications.
|Trading Unit:||25,000 pounds|
|Tick Size:||0.05 cents/lb. = $12.50|
|Quoted Units:||US $ per pound|
|Initial Margin:||$7,763 Maint Margin: $5,750|
|Contract Months:||All 12 months.|
|First Notice Day:||Last business day of month preceding contract month.|
|Last Trading Day:||Third last business day of the month.|
|Trading Hours:||Open outcry trading is conducted from 8:10 A.M. until 1:00 P.M.
Electronic: 3:15 P.M. on Mondays through Thursdays and concluding at 8:00 A.M. the following day.
Sundays, the session begins at 7:00 P.M. All times are New York time.
|Daily Limit:||$0.20 (20 cents) per pound|
Unlike KCN6 or “coffee” , HGM6 has no quality check on the actual nuggets, bars or copper ingots or how it will be settled whether physical or cash. But as swing or position trader in the futures we’re only concerned at the current action of the future contract’s market price, so somehow it’s traded like an equity, only more predictable.
SWAG on Copper
Robots will advise a “sell”, I will go for accumulate as blue line SMA(20) and red line EMA(13) crosses are imminent which will cause to bring the price of copper up with Parabolic SAR confirming the reversal of trend. Suggested price entries from 211.00 – 209.00 setting the stop loss at 205.00