Home > Futures Trading Basics
Nickel Futures Trading Basics
Nickel futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of nickel (eg. 6 tonnes) at a predetermined price on a future delivery date.
Nickel Futures Exchanges
You can trade Nickel futures at London Metal Exchange (LME).
LME Nickel futures prices are quoted in dollars and cents per metric ton and are traded in lot sizes of 6 tonnes (13228 pounds).
| Exchange & Product Name | Symbol | Contract Size | Initial Margin |
| LME Nickel Futures (Price Quotes) | NI | 6 tonnes (Full Contract Spec) | USD 14,400 (approx. 24%) (Latest Margin Info) |
Nickel Futures Trading
Consumers and producers of nickel can manage nickel price risk by purchasing and selling nickel futures. Nickel producers can employ a short hedge to lock in a selling price for the nickel they produce while businesses that require nickel can utilize a long hedge to secure a purchase price for the commodity they need.
Nickel futures are also traded by speculators who assume the price risk that hedgers try to avoid in return for a chance to profit from favorable nickel price movement. Speculators buy nickel futures when they believe that nickel prices will go up. Conversely, they will sell nickel futures when they think that nickel prices will fall.
Related Articles
- Buying Nickel Futures to Profit from a Rise in Nickel Prices
- Selling Nickel Futures to Profit from a Fall in Nickel Prices
- Nickel Options Basics
- Nickel Call Option Trading Basics
- Nickel Put Option Trading Basics
- Hedging Against Rising Nickel Prices with Nickel Futures
- Hedging Against Falling Nickel Prices with Nickel Futures
