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Precious Metals and Commodities Trading
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London Metal Exchange-charts, features, participants However, today's value is different! There are many types of metals that can bring profits to traders and investors. Today, we will learn to buy and sell precious metals through the world's largest commodity platform London Metal Exchange (our abbreviation is or) and cooperate with them.
One of the most influential organizations in the world, specializing in the trading of futures and options, and processing all metals used by humans in production. The exchange was established a century before the last century (1878). During its existence, it has become a powerful platform, and millions of traders all over the world work on this platform.
Due to the high liquidity of trading assets, the average annual turnover of the exchange is US$141,1,1,1. The London Metal Exchange employs automated merchants and multinational companies, producers and consumers of metals. Later we will discuss the main participants of the exchange and their categories, but now let us look at its functions.
Form the world price of precious metals and their products. The London Precious Metals Exchange sets prices for almost all metals that exist based on fluctuations in supply and demand. Since all parties are represented in one way or another related to the production, use and transportation of metals, the balance of supply and demand for trading assets established by the exchange reflects the global situation of the market. Traders who pursue personal economic interests have also contributed to the development of the global precious metals market.
For traders who specialize in Blanchard financial derivatives trading, this is a very relevant function. Options, futures, forward contracts and the future value of related assets are the basis of traders' income, and traders do not need unnecessary risks. In fact, the creation of is largely because it has been performing this function on the first day since its establishment.
According to the exchange contract, it guarantees the function of the guarantor who executes the transaction and controls the metal transportation operation. There are dozens of warehouses in which various trading assets are stored, which can guarantee delivery to the buyer after the futures or options transaction ends.
The London Precious Metals Exchange also performs many pure market functions, providing a comfortable working environment for traders and investors.
Provide a platform for speculative activities, the platform is not designed to buy real goods, but to profit from the difference between buying and selling assets. This is the bread for traders and all who think they are traders.
Nowadays, when currencies are soaring and falling, oil prices are getting cheaper and companies go bankrupt, it is difficult to find a more reliable and profitable way to invest in capital and prevent its assets than buying commodities that are most likely to not lose their value. Devaluation. These are precious metals.
Provide opportunities to generate additional profits by buying and reselling goods at different prices in different exchanges. Useful for option and warrant holders who have the right to dispose of tangible goods and can temporarily sell them to quickly collect funds. At the same time, through stockbrokers, the same quantity of goods were purchased under the condition of delivery after a certain period of time. In fact, this is a temporary transfer of rights to your goods for use by other market participants and returned within a specified time limit.
As you can see, the exchange has done everything for successful and profitable trading, and everyone can join. Now, let's talk about the main contributors. Individuals or legal entities on the Internet can obtain six main categories or statuses.
Participants with the greatest authority can conduct any number of transactions of any type.
, Runs in an open auction mode, 25 hours a day. Controlled by the system can ensure that the actual prices of assets are determined so that they accurately reflect market supply and demand conditions. Participants who trade in the ring are not allowed.
Participants work through a clearing house but have no trading rights.
Brokerage companies that provide customers with access to the exchange but cannot conduct independent transactions.
Customers make extensive transactions for the purchase and sale of assets and their rights, that is, we are merchants. Honorary exchange members who are not authorized to trade.
Obviously, we are only interested in two categories, namely traders (quasi-trade members) and brokers (quasi-broker members) who can access this super profit exchange. If everyone can be the first person, then they have License for cooperation with exchanges. Not all brokerage companies.
It works every day, except weekends and holidays. The transaction takes place in two periods.
For each metal, there are two series of transactions in each of the two trading sessions, lasting 5 minutes. The world's official asset prices are determined based on the results of the first second batch of transactions.
Trading is carried out in two types of standard exchange contracts, which are classic transactions in the stock market-futures and options. You can read about how to use them properly here. Each contract contains a list of delivery conditions, the time frame that must be executed, a list of requirements set by both parties to a particular asset, and of course the asset itself. We will consider them in more detail. The list of metals and their products sold on the London Metal Exchange is very extensive, including light metals (aluminum, titanium) and heavy metals (copper, tin, zinc, etc.), ferrous metals (iron, steel, cast iron) and non-ferrous metals. ...The so-called minor metals fall into a separate group-for example, cobalt and molybdenum. Of course, precious metals are also valuable and in constant demand. A complete list of the assets of the London Stock Exchange can be found on its official website, where we will consider the most popular and most in demand assets. Perhaps the most liquid asset on the exchange. There are four types of aluminum contracts: high-quality aluminum from the United States, Western Europe, East Asia and Southeast Asia. In addition, in addition to pure aluminum, its alloys can also be purchased on the London Stock Exchange. This is how the Shanghai Aluminum price dynamic looks like.
This is also a highly demanded asset, which is slightly inferior to aluminum in terms of transaction volume.
As you can see, the price per ton of copper varies greatly, depending on the delivery time.
Its trading volume is similar to copper, but it is much cheaper. This is what zinc offers.
Another very expensive popular asset. The official price of a ton of nickel is more than $8,000.
Tin, lead, cobalt and steel also use the London Stock Exchange.
Metals are low-volatility assets due to their particularities. Therefore, when investing in metals, investors are only guided by long-term profits. In order to make big money here, sometimes you have to wait for years. You can check it yourself by looking at the price chart of this exchange. Especially for those who know how to trade with derivatives markets, futures and options contracts. But, frankly, my trading brothers rarely follow this path. Nevertheless, the foreign exchange market and the stock market are more familiar. Yes, and more profitable, what can we hide.
Yes, metals are more stable, but is this a good thing for traders? The trader’s main responsibility is to increase prices, and each increase brings him profits? Any currency and most stocks are more promising, and at the same time, you can start using them with smaller amounts. 
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The Trade Academy is a learning portal about finance, foreign exchange, investment, cryptocurrency and making money on the Internet. Here, you will find materials to help you make money in the financial markets. Never rely on a single source of income. Invest to create a second source. 
The Trade Academy is an investor blog about finance, foreign exchange, investment, cryptocurrency and making money on the Internet. On the pages of this website, you will find materials that can help you make money in the financial markets. Precious Metals and Commodities Trading