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Hi there

New to trading metals and wanted to understand a bit more about the spot and futures pricing. I'll make the question in sections so it is easier to answer.

1) For base metals it seems only HG Copper has a futures and spot option. Does this mean there are no futures trading for the other metals? Or is the spot price derived from the LME 3 Month Futures Price?

2) Are there expiry dates on the spot prices and is there overnight funding for spot? (I am aware futures do not have overnight funding but are embedded into the spreads).

 

3) If there is overnight funding or an expiry date will they be displayed on the trade?

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@tombarrow,

On IG's UK Spread Betting platform there are quite a few Commodities that have both the 'Spot' and 'Futures' option available trade. There are some where just 'Spot' is available and others where 'Futures' is just available. You will have to go through them to ascertain which they are.

If you look at Precious Metals then they all have a 'Spot' and 'Futures' option. I suppose there is more liquidity from a markets / trading perspective which could possibly be the reason for this.

Yes there is overnight funding for 'Spot'. You are right 'Futures' do not have overnight funding but the spreads are less attractive. 

No overnight funding will not be displayed on the trade. IG will inform you of the charges by sending you a daily statement which includes them. You can alternatively go to the charges / cost section and try and work out the charges yourself.

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