Industry Metal Derivatives - Latvia

Latvia

The nominal value in the Industry Metal Derivatives market is projected to reach US$18.99bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.67% resulting in a projected total amount of US$22.74bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.07 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in China (US$2,835.00bn in 2024).
In the Industry Metal Derivatives market, the number of contracts is expected to amount to 300.90k by 2029.

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Analyst Opinion

The Industry Metal Derivatives market in Latvia is experiencing a shift in customer preferences towards more diversified investment options, reflecting a global trend in the financial market.

Customer preferences: Investors in Latvia are increasingly looking for alternative investment opportunities beyond traditional financial instruments. This shift is driven by a growing awareness of the potential benefits of diversification and risk management in their investment portfolios. As a result, there is a rising demand for metal derivatives as a way to hedge against market volatility and inflation.

Trends in the market: In Latvia, the Metal Derivatives market is witnessing a steady increase in trading volume and liquidity. This trend is influenced by the overall growth in the financial sector and the increasing participation of retail investors in derivative trading. Moreover, the development of advanced trading platforms and technologies has made it easier for investors to access and trade metal derivatives, further fueling market activity.

Local special circumstances: Latvia's strategic location as a gateway between East and West positions it as a key player in the metal derivatives market. The country's stable regulatory environment and well-established financial infrastructure attract foreign investors looking to diversify their portfolios. Additionally, the presence of a skilled workforce and a culture of innovation contribute to the overall growth and development of the metal derivatives market in Latvia.

Underlying macroeconomic factors: The economic stability and growth prospects of Latvia play a crucial role in shaping the metal derivatives market. As the country continues to strengthen its position in the European Union, investors are increasingly confident in the local market dynamics. Furthermore, the government's efforts to promote financial literacy and investor education have led to a more informed investor base, driving the demand for sophisticated financial products like metal derivatives.

Methodology

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.