Copper futures are CME contracts on copper. The standard HG contract covers 25,000 pounds, and each minimum move of $0.0005 per pound is worth $12.50. The Micro MHG covers 2,500 pounds ($1.25 per tick). Copper is driven by industrial demand, especially Chinese construction and manufacturing, the build-out of electrification and data centres, mine supply and the US dollar, which is why traders call it "Dr. Copper".
Copper sits where three big themes meet: China's economy, the energy transition and global supply. It trades nearly around the clock on CME, has a well-used micro contract, and responds to macro news in ways you can learn. Here's how the contract works and what moves it.
Contract specifications
| Copper (standard) | Micro Copper | |
|---|---|---|
| Symbol | HG | MHG |
| Exchange | COMEX (CME Group) | COMEX (CME Group) |
| Contract size | 25,000 lbs | 2,500 lbs |
| Price quote | US dollars per pound | US dollars per pound |
| Tick size | $0.0005 per lb | $0.0005 per lb |
| Tick value | $12.50 | $1.25 |
| $0.01 move worth | $250 | $25 |
| Settlement | Physical delivery | Cash |
A 10-cent move in copper (say $4.50 to $4.60 per pound) is $2,500 per HG contract and $250 per MHG. Check current margins with your broker. They change with volatility.
Delivery warning: HG is physically delivered. Retail traders must close or roll before the first notice day, and most brokers will liquidate positions ahead of it. MHG is cash-settled.
Trading hours
COMEX metals trade on CME Globex from Sunday 6:00 p.m. to Friday 5:00 p.m. ET, with a daily 60-minute break from 5:00 p.m. ET. Liquidity builds during the Asian session (China matters for copper), rises with the London open, and peaks during US hours.
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Score a Setup Free →What drives copper prices
1. China. China accounts for roughly half of global copper demand. Chinese PMIs, credit data, property sector news and stimulus announcements move copper more than most US data.
2. Construction and manufacturing. Copper is used in wiring, plumbing, machinery and appliances. It tends to rise when global manufacturing expands and fall in slowdowns. That's the "Dr. Copper" idea: it's read as a gauge of economic health.
3. Electrification. EVs, charging networks, grid upgrades, renewables and data centres all use a lot of copper. This long-term demand story drives much of the bullish case.
4. Supply. Mine disruptions (Chile and Peru are major producers), strikes, ore grade declines, smelter issues and new project delays can tighten supply quickly.
5. The US dollar. Copper is priced in dollars. A stronger dollar tends to weigh on commodities, and a weaker one supports them.
6. Inventories and trade policy. Exchange inventories (LME, COMEX, Shanghai) and tariffs on metals can create price gaps between regions. COMEX and LME prices can diverge meaningfully when US trade policy changes.
How traders approach copper
Trend following on the daily chart. Copper trends can last months, driven by macro cycles. Moving-average and breakout systems are common.
Macro event trading. Chinese data releases (mostly overnight for US traders), US ISM and PMI, and Fed decisions. Check the calendar. See how to use the Forex Factory calendar, which also lists Chinese releases.
Relative value. Copper vs gold (the copper/gold ratio as a growth-vs-fear indicator), or COMEX vs LME spreads for more advanced traders.
Intraday. Copper is less liquid than ES or CL. Intraday traders tend to focus on the overlap of London and New York hours, and avoid thin overnight sessions unless trading Chinese news.
Risk management
- Know your dollars per tick: $12.50 (HG) or $1.25 (MHG).
- Start with MHG. A 5-cent stop is $1,250 on HG and $125 on MHG.
- Expect overnight gaps from Chinese news and supply headlines.
- Watch the calendar for roll and first notice dates on HG.
- Size from the stop. See the position sizing guide.
New to futures in general? Read What Is Futures Trading? first.
TRADZY's Void Engine scores trend structure and momentum on any market, and the TradLog shows whether your commodity trades behave differently from your index trades. For most traders they do.
FAQ
How much is one copper futures contract worth?
The standard HG contract covers 25,000 pounds. At $4.50 per pound, that's a notional value of $112,500. The Micro contract (MHG) is one-tenth the size.
What is the tick value of copper futures?
$12.50 per tick ($0.0005 per pound) on HG, and $1.25 per tick on MHG. A one-cent move is $250 on HG and $25 on MHG.
Why is copper called Dr. Copper?
Because copper demand tracks industrial activity so closely, its price is often read as a signal of global economic health.
What time do copper futures trade?
On CME Globex from Sunday 6:00 p.m. to Friday 5:00 p.m. ET, with a daily one-hour break at 5:00 p.m. ET.
Do copper futures require delivery?
The standard HG contract is physically delivered, so retail traders must exit or roll before first notice day. The Micro MHG contract is cash-settled.
Put This Into Practice
- Score your next setup 0–100 with the Void Engine before entering
- Log the trade and tag the setup in the TradLog
- Review weekly: keep what pays, cut what doesn't
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Educational content, not financial advice. Trading involves substantial risk of loss.