DEFINITION of '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.

BREAKING DOWN 'London Metal Exchange - LME'

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.

  1. Base Metals

    Base metals such as aluminum, copper and zinc are widely used ...
  2. Commodities Exchange

    A commodities exchange is an legal entity that determines and ...
  3. Open Outcry

    A vanishing method of trading at stock or futures exchange involving ...
  4. Floor Trader - FT

    An exchange member who executes transactions from the floor of ...
  5. Precious Metals

    A classification of metals that are considered to be rare and/or ...
  6. Commodity Market

    The commodity market is a physical or virtual marketplace for ...
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