Copper (HG)

What HG tracks

HG is the COMEX Copper futures contract. One contract covers 25,000 pounds of copper, and prices are quoted in dollars and cents per pound. Deliverable copper must be Grade 1 electrolytic copper cathodes from approved brands in exchange-designated warehouses.

Copper is used in construction, power grids, electric vehicles and electronics, so its price is closely tied to the industrial economy. That is why some market watchers treat copper as a gauge of global growth. HG lets traders take a view on that demand or hedge physical copper exposure.

HG contract specifications

Specifications come from CME Group: COMEX Rulebook Chapter 111, CME Metals product guide, CME Micro Copper FAQ. CME can change trading hours, listed months and other terms, and holiday schedules differ, so confirm the details on CME Group's site before you trade.

What moves HG

Several forces tend to drive HG prices. None of them predicts direction on its own, and they often pull in different ways at the same time.

• Global growth, especially China. China is the largest copper consumer, so its industrial and property data matter a great deal.
• Supply disruptions. Mine strikes, outages and export rules in major producing countries can tighten supply.
• Energy transition demand. Electric vehicles, grids and renewable power use a lot of copper, which shapes long-term expectations.
• The US dollar and trade policy. A stronger dollar can weigh on prices, and tariffs can shift prices between US and overseas markets.

Example P&L math

Say HG rises by $0.10 per pound while you hold one long contract. That is 200 ticks of $12.50:

• 200 ticks × $12.50 = $2,500 per contract.
• A short position would lose the same $2,500. Losses and gains are symmetric before costs.
• On Micro Copper (MHG), which covers 2,500 pounds, the same move is worth $250.

These figures exclude commissions, exchange fees and slippage. Those costs shrink a winning trade and add to a losing one.

Our tick value calculator and position size calculator currently cover the original 16 contracts on FuturesPro and do not include HG yet. You can still do the math by hand using the tick value and point value above.

Margin

CME Group sets minimum performance bonds (margins) for every contract, and each broker then sets its own requirement, which can be higher. Many brokers also offer lower day-trading margins for positions closed before the session ends. These figures change often, especially when markets get volatile, so we do not quote a number here. Check your broker's current margin page before you trade, and compare brokers on our futures brokers page. Remember that margin is not the most you can lose. Losses on a futures position can exceed the margin you deposit.

HG vs MHG

CME lists a smaller Micro Copper contract, MHG, at one-tenth the size of HG. Micro Copper is cash-settled, while HG is physically delivered. We do not have a separate guide for MHG yet, so check its CME spec page for full details.

When the smaller contract fits: smaller accounts, learning, and strategies that need to scale in small steps. Micro contracts can trade less actively than the full-size contract, so check the bid-ask spread before you rely on one. When HG fits: larger accounts and traders who need the most active market, accepting that each tick is worth $12.50.

Position sizing

A common approach is to decide how many dollars you are willing to lose on a trade, then work out how many contracts fit. For example, with $200 of planned risk and a $0.02 stop on HG, each contract risks $500, so even one contract exceeds that limit. You would need a tighter stop, a larger risk budget or a smaller contract.

This example ignores commissions, fees and slippage, which make real losses larger. Stops can also fill worse than planned in fast markets.

Expiry and rolling

HG is physically delivered. If you hold a position after the last trading day, you can end up making or taking delivery, which retail and prop firm accounts are not set up for. Brokers usually require you to close or roll before a cutoff they set, which can be earlier than the exchange's last trading day. Check the CME calendar for exact dates each month.

Related contracts

• Gold (GC)
• Silver (SI)
• Crude Oil (CL)
• Henry Hub Natural Gas (NG)

See every contract we cover on the futures contracts page.

Frequently asked questions

What is the tick value of HG?

One minimum tick on HG is $0.0005 per pound, worth $12.50 per contract. The point value is $250 per one-cent move ($25,000 per $1.00).

What are the trading hours for HG?

Sunday to Friday, 6:00 p.m. to 5:00 p.m. ET, with a 60-minute break starting at 5:00 p.m. ET (5:00 p.m. to 4:00 p.m. CT). Holiday hours differ, so check CME Group's holiday calendar.

Is HG cash-settled or physically delivered?

HG is physically delivered. The last trading day rule: third last business day of the delivery month.

How much margin do I need to trade HG?

Margins are set by CME and then by each broker, and they change with market conditions. Check your broker's current margin page, and see our futures brokers comparison.

Why is copper called a growth indicator?

Copper goes into buildings, power lines, vehicles and electronics, so demand rises and falls with industrial activity. Traders watch it for clues about the economy, but it is also moved by supply shocks that have nothing to do with growth.