What's the difference between spot copper and copper futures?
As a well-deserved member of the non-ferrous metal family, copper has always attracted much attention. However, like the price fluctuation of precious metals, the main fluctuation period of copper price is from 15:30 pm to 2:00 am the next day, which happens to be the time when domestic copper futures are closed, and many copper traders in China market miss the most important trading opportunity of the day in vain. Moreover, the discontinuity of copper futures trading in China and the price limit mechanism have caused a huge gap in the previous trading, and also caused unnecessary losses to investors. The following small series uses a short table to compare the trading differences between futures copper and spot copper: the "big difference" between spot copper and futures copper. As can be seen from the table, spot copper and futures copper have great differences in many trading details: 1, spot copper's minimum price change unit 1 yuan/ton, while futures copper is 10 yuan/ton, and spot copper's quotation is more accurate. 2. Futures copper has a daily maximum fluctuation limit, that is, the price limit, and spot copper does not exist; 3. Futures copper can no longer be held after the expiration of the month and must be delivered, which is not the case in spot copper; The biggest difference between them is the trading time. Spot copper can realize all-day uninterrupted trading, while futures copper only has four hours of trading time every day, completely missing the European and American time with the biggest price fluctuation, resulting in a huge waste of trading opportunities; 5. In terms of transaction fees, futures copper has more advantages than spot copper, and the handling fee rate is lower. From the above comparison, we can see that spot copper has obvious advantages in trading mechanism. As a trade product with a long history, copper plays an important role in the metal market. At present, the exchange adopts the international quotation (LmeS_ Copper 3 quotation of London Metal Exchange) as the standard, and converts it into RMB quotation at the daily median price of USD against RMB. The continuous quotation is closest to the RMB price quoted internationally, providing the most fair trading products for domestic metal and copper traders.