Copper Spreads

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Copper looks to be in backwardation. What do you think of shorting the near-by contract and go long a longer-dated contract?
 
don't take this the wrong way but if you have to ask, it is probably not a good idea to make this trade. Do you know why its in backwardation, how long it lasts, etc...
:)
 
I don't take it the wrong way. I don't even have an account that would allow me to buy pit contracts.

I just want to learn.
 
It's in backwardation most likely because of a supply issue. There is almost always a fundamental reason why front month is in such high demand, and unless you have some copper you can deliver it may not be worth the risk.
 
Throw a chart up see what the months you wish to trade look like.

Just on basics, that trade is a bear spread and copper is in a bull run and as illiquid as an OTC sink sheet stock !!!!!! I think there is like 12 traders in that ring on the COMEX, maybe more.

But take a look at it anyway.

once again my 2c.....
 
Throw a chart up see what the months you wish to trade look like.

Just on basics, that trade is a bear spread and copper is in a bull run and as illiquid as an OTC sink sheet stock !!!!!! I think there is like 12 traders in that ring on the COMEX, maybe more.

But take a look at it anyway.

once again my 2c.....
 
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