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Copper: Trading the Red Metal

trade copper with binary options

Copper is one of the most valuable and appreciated metals known to man. Since the ancient times, it has already been a known material and has been used in a various industries. This highly versatile commodity is currently used primarily in electrical wirings since it has the capability to conduct electricity. Aside from this feature, it is also very malleable and can be produced into thin wires which are very ideal for modern electrical systems.

 
It is usually found in ore which is first mined from the earth. The ore then goes through a series of developments that will refine and extract the metal. 15 million metric tons are produced globally in a year where Chile accounts for about a third of its production. The United States comes in second contributing to more than a million tons of it annually. These two major suppliers have extensive reserves of this red metal that could be exhausted within the next 50 years. Other producing countries include Peru, China, Australia and Indonesia.

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The nature and quality of copper

Copper is also known to corrode very slowly that is why most of its products remain in use for a very long time on electrical and drainage systems. In fact, previous products that are made from this metal can be recycled for some new purpose without degrading its quality. Even scrap metals can be significant sources of supply where the contents are reprocessed for other uses and are sold for substantial values. It is also an essential component of many useful alloys such as brass, bronze and sterling silver.

The alternative to more expensive metals

The reason why it is always in demand is because it has similar properties of gold and silver. It is a viable alternative to these more expensive metals for practical reasons. Its inexpensive value makes it more appealing since it can be used in various industrial applications such as heating and cooling systems, power generation and many more. Compared to other metallic materials, it also offers better conductivity.

This feature greatly decreases electrical consumption of motor-driven systems making it more energy efficient. In fact, motors that employ newer technologies use copper and are exceeding premium efficiency standards; that is why this metal offers a lot of potential for greater energy savings. Its cheaper price and capability to reduce energy consumption makes it the most cost-effective metal for various industries.

Currently the three major consumers of this commodity are the US, Russia, and Japan. China is also predicted to have a huge demand for this metal as the country’s economy is expected to accelerate in the future.  Building construction is primarily accountable for the increase in demand especially for developing countries. Transportation equipment and industrial machineries also add up to the increase of supply for these major consumers as they continue to develop their economy.

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The volatile price of copper

This commodity combines relatively low prices and high electricity conduction attributes and therefore many of the communication cables used for example incorporate a significant amount. The high demand is still not enough to stabilize the price rate because of many demand bursts by many companies in the developing world. With binary options, you can take advantage of its high volatility and transform it to instant returns for your investments. Its unstable nature and voluminous price swings make it a good math to use especially when using one touch.

Trading with binary options

Now you can trade copper contracts with a binary trading platform. This red metal can be found in the commodities group and all you have to do is predict its price movement to earn substantial profits. Regardless of its value, you can make good yields as long as you invested on the right options and guessed the correct direction of its price.

Making more confident on your tradeoff decisions however is very risky especially if you don’t have the right tools and the right information. With the help of a trusted trading platform you’ll have access to real-time updates so you can effectively place your investments on this precious commodity and transform it to huge profits. So don’t just settle for an ordinary trading platform. Open an account at a reliable platform and start trading options contracts today!

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