Introduction to the London Metal Exchange and Hedging: Three Days

The three-day introductory course is an essential tool in helping market participants understand how the Exchange operates.

We are now also offering our in-person training virtually. We have worked with Euromoney Learning to develop an online format delivering you the same opportunity to develop your knowledge on the LME and engage with our expert trainers.

More information on LME Education virtual learning

Check our course calendar and times

What will you learn

  • Become familiar with the LME's prompt date structure and trading procedures
  • Gain a full understanding of the LME's market terminology
  • Understand the benefits of the delivery process used by the LME
  • Gain an understanding of the role of LME Clear
  • Learn how to access the LME through member firms
  • Understand how effective price risk management can be achieved with LME services
  • Gain an understanding of the benefits of hedging with futures and options across all sectors of the industry

Benefits for you

This course will provide you with an understanding of the key services provided by the LME and demonstrate how these services can improve your organisation’s approach to price risk management. Both theoretical and practical skills developed at this course can be applied easily in the workplace.


Find details and locations for this course

Benefits for your organisation

Organisations will benefit from employees who have a clear understanding of how the LME operates and how its core services of pricing, hedging and delivery can benefit the company.

This course is CPD Certified by the CPD Certification Service.


Featuring 3 individually bookable modules:
Day One - Introduction to the London Metal Exchange: One Day
Day Two - Hedging with LME Futures: One Day
Day Three - Hedging with LME Options: One Day 

Course Programme

Day One

  • History, organisation and services of the LME
  • Market terminology of the LME
  • Carries
  • Warehousing and fundamentals of delivery
  • Trading at the LME
  • Clearing
  • Role of the broker

Day Two

  • Basic concepts, uses and benefits of hedging with futures
  • Basic hedging examples
  • Contango and backwardation
  • Setting up a hedging team
  • Hedging with Monthly Average Futures
  • Risk considerations and locking in contangos

Day Three

  • LME options
  • Options terminology
  • Risk implications and motives
  • Hedging with options
  • Options pricing models
  • TAPOs
  • Selling an option


Contact us

For further information please email our Education team.