Inside the LME - the last of the 'pits'
The London Metal Exchange: LME
The LME is one of the last pit traded venues in the world which has escaped the computerisation and digitalisation of the modern world. The iconic image of the 80's with men in brightly coloured suits has all but gone, however the live 'ring' as it's known is still the number one place in the world to trade a number of ferrous, non-ferrous, precious and minor metals. LME participants can trade and take or make delivery of aluminium, copper, tin, nickel, zinc, lead, aluminium alloy and NASAAC, as well as steel and scrap contracts, LME silver and LME gold, and other lesser known metals such as cobalt and molybdenum futures.
We recently spent an afternoon at the venue and I managed to take the following video which I thought I would share with Community members. The LME is used for dealers and institutional trading houses who sometimes work on behalf of real world companies such as car manufacturers who need aluminium for delivery. A staggering 80% of the worlds industrial metal prices are set in this room. Everyone tends to wait until the end of the session, so the final few moments can be very exciting! It's only a minute or so long, but you can see the excitement as people can't even stay on their seats around the 30 second mark!
Trade LME metals with IG
As as exciting as this can be, I still think it's quite good that you can get exposure to all these same assets on the IG dealing dealing platform. Simply check out the Commodities section on the left hand fly out, and scroll to 'Base Metals'. You can also use the 'news' section on the left to search for specific news relating to these markets which may be lesser known to yourself.
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