London Metal Exchange - LME
A commodities exchange in London, England, that deals in metal futures. Contracts on the exchange include aluminum, copper and zinc. Trading on the LME can be done in three main ways: through open outcry, a telephone system between member companies or the LME Select, an electronic trading platform. The LME is a non-ferrous exchange, which means that iron and steel are not traded on the exchange.
Investopedia Commentary
The LME is one of the main metal markets in the world and allows for the hedging of metals risk through highly liquid and standardized exchange-traded futures contracts. The LME also trades plastics on its exchange and has an LME index option that allows traders to speculate or hedge the broader metals market as a whole.
Related Links
Futures Fundamentals
Becoming Fluent in Options on Futures
See also: Commodity, Commodity Futures Contract, Futures, Futures Contract, Member, New York Mercantile Exchange - NYMEX, Open Outcry
Also spelled: LME