We trade sugar on the stock exchange without leaving home

Many beginners, having tried their hand at currency trading, are disappointed; it would seem that nothing is easier than guessing the exchange rate.

But in reality, the trend constantly changes its direction and it seems that the price is simply playing against you.

No matter how simple Forex trading may seem, it is one of the most complex segments of the financial markets; forecasting futures is much easier.

For example, take the same sugar that we add to coffee every day, it is also traded on the stock exchange and is present 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 earn money.

Features of sugar trading

In the trader's trading terminal you will find this asset called SUGAR, while trading has its own peculiarities:

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

• Contract duration is 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 apply here.

An increase in production followed by an increase in supply always leads to a decrease in price, since the quantity supplied of a good exceeds the demand for it.

After a sharp drop in prices, many producers begin to reduce production, as a result, the price of sugar creeps up next year.

The yield of the raw materials from which the product is produced also plays an important role, with the largest producers being countries such as Brazil, India and some European countries.

Therefore, a crop failure in one of these countries can always provoke a jump in prices on the stock exchange, and record harvests can cause a drop in prices.

At the moment, the price of sugar is at a fairly low level, so there is a high probability of price increases and purchase transactions will be advisable. But we should not forget about the duration of contracts.