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Financial CFD Markets Explained
We have collated a detailed description of all our financial CFD markets, providing you with detailed market and trade information plus descriptions to explain more about each particular instrument.
Sugar (New York No. 11), Mar
| NTR: | Contracts | % * | |||
|---|---|---|---|---|---|
| .50 | ||||
| 2.50 | ||||
| 5.00 | ||||
| 35.00 |
| Limited Risk NTR: | Contracts | % * | |||
|---|---|---|---|---|---|
| 10.00 | ||||
| 35.00 |
| Spread Premium: | Contracts | Multiplier | |||
|---|---|---|---|---|---|
| 1 | ||||
| 2 | ||||
| 4 | ||||
| 20 |
*When placing a new trade the NTR Multiplier is calculated from the mid-point of the current price. E.g. if a share is currently trading at 199.7 – 200.3 with an NTR multiplier of ‘10% of the current price’ then the NTR Multiplier at that time will be 20 (10% of 200). Once you have an open position in a market, if that position is a buy it will be marked to the current bid price and therefore the NTR Multiplier will be calculated from the bid price. If the position is a sell it will be marked to the offer price and therefore the NTR Multiplier will be calculated from the offer price. Please note this means that NTR Multipliers will vary as the price and bid-offer spread of the market moves.
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Market Description
Sugar is used as a natural sweetener for food and drinks and increasingly used to produce ethanol, a biofuel. Sugar can be produced from sugar beet or sugar cane. Most production comes from Brazil, the United States and China.
Sugar #11 futures are primarily traded on the InterContinentalExchange (ICE) with prices quoted in cents per pound. To give an example of the range covered by the commodity, in 2010 alone sugar rose from lows of 13.03 cents in May to highs of 33.31 cents in November.
When CFD trading on sugar you trade per 0.01 cent movement. Price movements can sometimes be volatile with up to 100 point movements per day occurring with regularity.
When trading a CFD with Spreadex on the future price of sugar, you can trade on Futures markets with prices quoted based on expiry at a given future date. For example, Spreadex may quote sugar, Futures at 27.36-27.46.
If you wish to trade a CFD on the price of sugar and you believe the value of sugar will rise, you would buy on the price. If you believe it will decrease, you would sell on the price. If your trade is successful you will win the number of points difference multiplied by your stake. If your trade is unsuccessful you will lose the number of points difference multiplied by your stake.
When CFD trading on sugar there are several major factors to monitor which can influence the price. These would include the demand for alternatives to sugar such as artificial sweeteners, the demand for bio fuel, which is inversely correlated to the price of crude oil, and political influences such as subsidies. As sugar’s price is quoted in US dollars, any fluctuations in the value of the American currency can also influence the price of sugar.
