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What Is LME Inventory & How To Impact in base metal Trading ?

  • 5

What Is LME Inventory & How To Impact in base metal Trading ?

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1 Answer

  1. What is LME Inventory Means?

    Lme Inventory A commodities exchange in London, England, that deals in metal futures. LME Stands for London Metal Exchange. Contracts on the exchange include aluminium, copper and zinc. Trading can be done in three main ways: through open outcry, a telephone system between member companies or the LME Select, an electronic trading platform. The LME is a non-ferrous exchange, which means that iron and steel are not traded on the exchange.

    LME stands for London Metal Exchange, the largest metal exchange for the base and other metals. On this exchange future and options contracts are daily traded, except holidays. LME provides contracts with daily expiry dates of up to three months from trade date, weekly contracts to six months, and monthly contracts up to 123 months. The exchange also provides cash trading. It offers hedging, worldwide reference pricing and the option(choice) of physical delivery to settle contracts.

    Commodity Inventories plays an important role in commodity trading, especially in future trading. It directly provides you an idea about commodity demand and supply. Inventories of commodities, with low inventories typically leading to more volatile future prices and increasing the risk of a “stock out” (inventory exhaustion). Commodity Calls collects the data for its members from various sources and present it for your convenience. Inventory data of commodities is used on the relationship between inventories and commodity futures risk premiums.

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