Range of Markets
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.
Wheat, May
| 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
Wheat is used in a variety of ways to produce livestock feed and various different foodstuffs from biscuits to flour. It is also used to distil alcohol. The biggest wheat producer is China, but Russia, Canada and the US produce sizable amounts.
Wheat prices are generally quoted in cents per bushel. To give an example of the range covered by the commodity, in June 2001 wheat was trading at lows of 243 cents before rising to highs of 1300 cents in February 2008.
When trading a CFD on wheat you trade per cent movements. Price movements can be quite volatile with 100 point movements per day not uncommon.
When trading a CFD with Spreadex on the future price of wheat, you can trade on Futures markets with prices quoted based on expiry at a given future date. For example, Spreadex may quote wheat, Futures at 686.1-690.1.
If you wish to place a CFD on the price of wheat and you believe the value of wheat 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 wheat there are several major influences to consider which may affect the price. These would include the demand for biofuels, the availability and price of substitute products (especially when it comes to livestock pricing) and any diseases which could damage crops. As wheat’s price is quoted in US dollars, any fluctuations in the value of the American currency can also influence the price of wheat.
