Our contracts allow all those along the metal supply chain, as well as investment communities, to hedge against or take on price risk. Our unique prompt-date structure provides flexibility for the metal community to trade daily, weekly and monthly, mirroring physical trading.
All LME contracts are traded in lots - which vary in size from 1 to 65 metric tonnes depending on contract type and the underlying metal - and are priced in US dollars.
The LME publishes official exchange rates to enable settlement in pound sterling, Japanese yen and euros, as well as US dollars.
LME futures provide members of the metal and investment communities with the unparalleled opportunity to transfer and take on price risk.
An option is the right, but not the obligation, to buy or sell a futures contract at a price (the strike price) agreed today.
Traded Average Price Options (TAPOs) give the metal community a flexible way of hedging against fluctuations in the Monthly Average Settlement Price.
|Monthly Average Futures
Monthly Average Futures (formerly LMEswaps) are designed specifically for members of the metal community who need to hedge against the monthly average price.
|HKEX London Minis
London Mini Futures are contracts designed to meet the needs of the Asian metals community who want to mitigate or take on price risk using renminbi instead of US dollars.
London Metal Exchange Index (LMEX) futures are designed to provide participants with a simple way of gaining exposure to the LME's six primary non-ferrous metals.
LMEminis are five tonne cash-settled monthly future contracts that settle against the LME 'parent' contract Official Settlement Price.
|What are LME futures and options - video?
Find out more about how the LME's futures and options contracts work in part one of this video series.