The London Metal Exchange (LME) can be described as a commodities market exchange that deals in metals options contracts and futures contracts.
The London Metal Exchange is classified as a non ferrous exchange, which implies that ferrous metals like steel and iron do not trade there.
Rather, tradable commodities include aluminum, copper, gold, silver, cobalt, and zinc.
Located in London, England, the London Metal Exchange is the global center for the exchanging of industrial metals, with more than seventy five percent of all non ferrous metal futures business transacted on the exchange.
The London Metal Exchange is one of the major commodities markets around the world and takes into consideration exchanging of metals futures contracts as well as metals options contracts.
It also lists futures contracts on its London Metal Exchange Index or LMEX, which can be described as an index that follows and tracks the prices of the metals that are being traded on the London Metal Exchange.
Futures contracts and options contracts on London Metal Exchange are normalized with respect to expiry dates as well as size.
Expiry dates are organized so that traders can browse and select from daily, weekly, as well as monthly contracts.
In the interim, contracts are exchanged sizes referred to as lots, which vary from 1 metric ton to 65 metric tons in weight.
Lot size will vary based on the metal.