What are Copper Futures?
As with any other other commodity, those who engage in buying and selling copper futures are essentially betting that the future price of that product will rise or fall. The buyer agrees to pay a fixed price at some point in the future when an agreed-upon contract comes due. The seller agrees to sell for that price. In theory, engaging in copper futures contracts can minimize the risk for those dealing in that metal. If the price rises, the buyer makes a profit, because he has arranged to buy copper for less than the going rate. If the price falls, it is to the advantage of the seller. In practice, however, only a small percentage of these copper futures contracts are ever actually consummated. Copper futures speculators are always ready to buy up and sell these contracts to other speculators in hopes that the price of copper will fluctuate to their advantage. Thus, they take the risk, and the possibility for profits, upon themselves. There are factors about copper that make it perhaps
