Trade sugar on the exchange without leaving home

Many beginners, having tried their hand at currency trading, become disillusioned. It seems as if nothing is easier than guessing the exchange rate.

But in reality, the trend constantly changes direction, and it seems as if the price is simply working against you.

As simple as Forex trading may seem, it's one of the most complex segments of the financial markets; forecasting futures is much easier.

For example, take the sugar we add to our coffee every day; it's also traded on the exchange and is available in the terminals of some brokers:

Alpari - https://alpari.com/ru/
Forex Club - www.fxclub.org  

Therefore, if you wish, you can also use this asset to make money.

Features of sugar trading

In the trader's trading terminal, you will find this asset under the name SUGAR, but there are some peculiarities in trading:

• Minimum volume - 50.8 tons, at today's price of $ 324 per ton, the transaction size will be $ 16,460.

• Contract restriction time - several months.

• Average commission per transaction - 0.15%

• Commission for transferring a transaction - 0.02%

The price of sugar fluctuates depending on supply and demand, purely market pricing methods are in effect here.

Increased production followed by increased supply always leads to a price decline, as the supply exceeds demand.

After a sharp price drop, many producers begin to reduce production, resulting in a rising sugar price the following year.

The yield of the raw materials from which the product is made also plays a significant role, with the largest producers being Brazil, India, and some European countries.

Therefore, a poor harvest in one of these countries can always trigger a price spike, while record harvests can lead to a price decline.

Currently, the price of sugar is quite low, so there is a high probability of price increases, and buying transactions would be advisable. However, it's important to keep in mind the expiration dates of the contracts.