What Are Copper Futures? HG Explained
Learn what HG Copper futures are: 25,000-pound Grade 1 cathode contracts quoted in cents per pound, their $12.50 outright tick, and physical delivery.
Direct answer
Copper futures, commonly identified as HG, are COMEX contracts for 25,000 pounds of Grade 1 electrolytic copper cathode quoted in U.S. cents per pound. On CME Globex, an ordinary outright minimum movement of 0.05 cent per pound equals $12.50 per contract. A one-cent move equals $250. Standard HG futures are physically deliverable from Exchange-designated warehouses rather than cash settled.
HG names a dated COMEX copper agreement, not a spot pound quote
HG is the product root for COMEX Copper futures. A complete agreement also has a contract month and year, so a value displayed beside HG is not automatically a current spot quote for a pound or a perpetual metal holding. It is a labelled observation of a futures contract, and the label determines which rules and delivery process apply.
How to read Copper futures quotes shows which fields make an observation usable. Copper futures expiration and delivery explains why the named month matters when a contract approaches its delivery period.
The 25,000-pound HG unit converts a cents quote into contract dollars
Chapter 111 sets one standard HG contract at 25,000 pounds of Grade 1 cathode within a 2 percent weight tolerance. Because quotation is cents per pound, a one-cent move equals $250 per contract and the 0.05-cent minimum step equals $12.50. The unit describes the standardized quantity; it is not a claim about an account balance, margin, or appropriate order size.
Futures tick value and contract multipliers derives the HG $12.50 outright tick from the 25,000-pound unit. Futures position sizing treats that contract unit, the number of contracts, and an account's own limits as three separate inputs.
HG cents pricing keeps tick math in hundredths of a cent
Copper is quoted in cents, so the 0.05-cent minimum step reads as 0.0005 dollars per pound. Five such steps make a quarter-cent, twenty make a full cent worth $250. TAS prints track settlement within their own band, so a TAS observation and an outright observation need different labels even when both sit near the same price.
Record the execution type before calculating a movement or comparing two displayed prices. Mistaking a cents quote for a dollars quote overstates every HG calculation by a factor of one hundred.
Deliverable Grade 1 cathodes back the HG contract design
Copper delivered against HG must be Grade 1 electrolytic cathode meeting ASTM B115, from a single Exchange-approved brand, weighed by a licensed weighmaster with a weight certificate, and declared by a designated warehouse without freight allowance. Chapter 111 points to Chapter 7 for the broader framework, and warehouse plus clearing arrangements matter for an actual open position.
Cash-settled versus physically delivered futures draws the general settlement-design line, and HG sits on the physically deliverable side. What are Silver futures covers the sister industrial metal contract for readers comparing base and precious metals.
A workable HG record separates quotation facts from account facts
Before relying on an HG number, preserve the root, month-year, cents-per-pound convention, trade or quote type, price field, source, timestamp, session, and data status. Futures contract month codes helps turn a compact HG symbol into the agreement whose delivery calendar applies.
Margin is collateral, not a substitute for the 25,000-pound contract unit or a recommendation to open a position. Futures margin versus leverage explains that distinction without inferring an account-specific requirement.
This guide explains standard Copper futures mechanics. It does not provide a live copper price, a metals forecast, margin requirement, trade recommendation, or broker delivery instruction. Current COMEX rules, data terms, clearing procedures, and account documents govern a particular contract.
Common questions
What does HG mean in futures?
HG is the COMEX product root for Copper futures. Add a contract month and year to identify the particular standardized agreement.
How many pounds does one HG contract represent?
One standard HG contract represents 25,000 pounds of Grade 1 electrolytic copper cathode within a 2 percent weight tolerance, from a single approved brand.
What is the ordinary HG tick value?
The ordinary CME Globex outright minimum movement is 0.05 cent per pound, equal to $12.50 per standard HG contract. One full cent equals $250.
Why are copper prices quoted in cents?
Copper trades around a few dollars per pound, so cents keep the quote readable: a $4.50 quote means $4.50 per pound, or $112,500 per contract. Always confirm whether a figure is cents or dollars before calculating.
Are Copper futures cash settled?
No. Standard HG futures are physically deliverable under Chapter 111 and the applicable delivery procedures. Current clearing and warehouse documents determine the handling of a particular open position.