WHAT'S NEW?

FINANCIAL MARKET COURSES

Commodities - Base Metals

Base metals are malleable, ductile, and corrode relatively easily. Such properties have found widespread use in various industries. In today’s world, industrial and technological advances have increased the requirement to improve physical infrastructure in developing economies, thereby increasing the demand for base metals. Investors and metal buyers have thus developed the base metal market into a more mature market.

 

This course looks at the fundamentals of trading in the various base metals markets: copper, aluminum, zinc, nickel, lead, and tin. It also describes in detail how the London Metal Exchange (LME) facilitates trading for base metals on a worldwide basis.

  • OBJECTIVES

    On completion of this course, you will be able to:

    Describe the key features of base metals and the participants in the base metals market

    Explain the fundamentals of base metals pricing, and identify the various elements that affect prices

    Describe the process of hedging and trading in the base metals market

  • COURSE OUTLINE

    Topic 1: Overview of the Base Metals Market

    Types of Metals

    Main Base Metals Traded

    Market Participants

    o Producers

    o Consumers

    o Base Metal Prouder

    o Traders

    o Financial Initiations

    o Investors

    Topic 2: Base Metals Pricing Fundamentals

    Spot Prices

    Forward/Future Prices

    Basis

    Forward Price Considerations

    Convenience Yield

    Topic 2: Base Metals Pricing Fundamentals

    Base Metal Market Segments

    Exchange-traded Market

    o The London Metal Exchange (LME)

    • LME Contracts

    • Trading on the LME

    • Delivery of the Underlying Metal

    • Contact Specifications for LME Contacts

    o New York Mercantile Exchange (NYMEX)

    o Shanghai Futures Exchange (SFE)

    o Over the Counter (OTC) Derivative Market

    o Forward Contracts

    o Swaps

    o Options

    • Copper and Other Options

    Hedging

    o Forwards/ Futures

    • Futures – Hedging

    • Short Hedge – Example

    • Long Hedge – Example

    o Options

    • Options Hedge – Example

    Trading

    o Position trading (speculating)

    o Calendar spread trading

    • Intra- market Spread

    • Example of Intra - market Spread

  • PREREQUISITE KNOWLEDGE

  • ESTIMATED COMPLETED TIME

    90 Minutes

Next Course

VIEW COURSE

INTRODUCTORY

Support

Accreditations

General: info@intuition.com

Accounts: ar@intuition.com

http://support.intuition.com

Intuition engages with over 30 accreditation bodies to ensure Know-How can be used for CPE credits. If your organization needs CPE from a body not listed below, contact us and we will endeavour to have them included.

© Copyright 2016 by Intuition. All Rights Reserved.