How do I find out more about trading on the LME?
The LME runs regular introductory courses on the LME, hedging and traded options. For more information about our courses and other marketing materials available from the LME, contact lme.education@lme.com.

I wish to trade on the LME. How do I go about this?
Trading on the LME must be done through an LME broker member (categories 1, 2 and 4) or an agent or subsidiary company acting on behalf of a broker member. Contractual arrangements between brokers and their customers are on a principal to principal basis and are negotiable.

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I have some metal and would like to sell it on the LME.
The LME is not the natural outlet for physical metal. It is, rather, a financial market used mainly for limiting future price risk, supported by a delivery of last resort. Companies with physical metal to sell will normally deal directly with their customers or through merchants. Some LME members do have a physical department.

Metal to meet deliveries of LME contracts, that do go to delivery, is stored on warrant in LME-approved warehouses and must meet the specifications of the individual metal contracts as laid down by the LME. In order to ensure the quality of metal held on warrant for delivery against LME contracts, all such metal must be of a brand listed as good delivery by the directors of the LME.  If a party wishes to sell metal and that metal is of a brand and specification in accordance with LME rules, then the party can deliver the metal to the warehouse, have it placed on warrant and sell it through a broker on the LME.

What metals/plastics are traded on the LME?
The LME trades futures and traded option contracts in the main non-ferrous industrial metals, namely Primary Aluminium, Aluminium Alloy, NASAAC, Copper Grade A, Standard Lead, Primary Nickel, Tin and Special High Grade Zinc.

Two plastics contracts are traded in Polypropylene and Linear Low Density Polyethylene.

It also has an index contract - LMEX, which tracks the six primary base metals traded. For information on metals not traded on the LME, we recommend you contact the appropriate trade association, many of which are listed in 'useful links'.

I wish to buy metal from the LME.
The LME is not the natural source for physical metal. It is rather, a financial market, used mainly for limiting future price risk, supported by a delivery of last resort. Consumers wishing to buy physical metal normally do so directly from producers or through merchants. Some LME members do have a physical department.

Metal to meet deliveries of LME contracts, that do go to delivery, is stored on warrant in LME-approved warehouses and must meet the specifications of the individual metal contracts as laid down by the LME. In order to ensure the quality of metal held on warrant for delivery against LME contracts, all such metal must be of a brand listed as good delivery by the directors of the LME. If a party wishes to buy metal via the LME it can do so through a broker on the LME.  It should be noted that delivery is at seller's option and the location, production source and shape cannot be guaranteed.  However, the metal will be of a brand and specification in accordance with LME rules and will be stored in an LME approved warehouse.  The LME price is 'in warehouse' and the costs of taking up that metal will have to be met by the buyer. 

How do I find out about the LME dinner?
LME week always takes place in October. Many of the events are organised by the broker members and are by invitation. The Exchange organises two events; a metals seminar and the dinner. The LME invites a limited number of guests to the dinner, the majority of attendees are guests of member companies who purchase the tickets. The metals seminar is a ticket affair and these are available from the Exchange. A nominal charge is made to ensure commitment. For details of these LME organised events contact lme.marketing@lme.com.  Other events during LME week are occasionally organised by industry participants which may also be listed.

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How can I become a member of the LME?
Membership of the LME is on a corporate basis and through election by the board. There are various categories of member. These categories are basically divided between broker members and trade members. The criteria required for an applicant company to be successfully elected will vary according to category.

Broker members are those companies allowed to issue LME contracts - buying and selling metal on behalf of their customers. Trade members are industrial or financial companies, with an interest in the metals industry, who take out an LME membership, primarily, in order to be kept informed of the strategic development of the Exchange. They cannot issue LME contracts; if they wish to trade, they must do so through a broker member or a subsidiary or agent acting on behalf of a broker member.

How do I register a brand of metal on the LME?
Applications for the listing of brands, which have to be submitted on behalf of the producer, through a ring dealing member, must be supported by assay certificates from two official assayers approved by the LME. The directors will also require that the metal meets all aspects of the LME contract specifications.

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Who can trade LMEminis?
LMEminis can be traded via LME Select by members, and clients of members can trade through a member’s order routing system, or via the telephone.

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How do I receive daily real time or 30 minute delayed LME prices?
The LME does not publish same day prices on to its website.  You must subscribe to a service from an authorised distributor.  For more information contact market.data@lme.com.  For one day old official prices, stocks and turnover reports go to Data & Prices.

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What is an 'option'?
An option is a contract which gives the buyer the right, but not the obligation to buy or sell metal or the index at a specific price for a specified time. For this right, the buyer pays a premium. The buyer of LME-traded options has three choices of activity. They can exercise (declare) the option, when they will receive a futures contract as specified in the option contract; they can abandon the option, whereby nothing happens but they lose their premium; or they may be able to trade the option by selling it back to the market, so reclaiming some or all of the premium or even making a profit.

There are two types of options calls and puts:
A call option gives the buyer the right but not the obligation to buy the underlying metal or index contract. The seller of a call option has the obligation to sell the underlying metal or index contract should the buyer exercise.
A put option gives the buyer the right but not the obligation to sell the underlying metal or index contract. The seller of a put option has the obligation to buy the metal or index contract should the buyer choose to exercise.

How has the Euro affected the LME?
LME trading is relatively unaffected by the Euro, in that all LME contracts are traded and quoted in US dollars. However, LME contracts can be cleared in currencies other than US dollars - namely the Euro, Japanese yen and pounds Sterling. The tonnages cleared in currencies other than US dollars are relatively small so the introduction of the Euro as a clearing currency has not been particularly significant. It has broadened the range of European customers able to use this facility.

How do I access real-time market data from the LME?
Live LME market data is available through licensed data distributors and direct from the LME via LMElive. Distributors range from data vendors to specialist industry publications and news providers. You do not need to become a member of the Exchange to access LME market data.

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