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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 NameSymbolContract SizeInitial Margin
LME Nickel Futures
(Price Quotes)
NI6 tonnes
(Full Contract Spec)
USD 14,400 (approx. 24%)
(Latest Margin Info)

Nickel Futures Trading Basics

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.

Learn More About Nickel Futures & Options Trading

How to Start Trading Nickel Futures

To buy or sell nickel futures, you need to open a trading account with a broker that handles futures trades. Most online brokerages out there only deal with stocks and stock options. Only a few such as TD Ameritrade lets you trade futures and futures options as well. TD Ameritrade also provide a virtual trading platform where beginners can try out futures and options trading in real market conditions without using real money.

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