What are CFDs
- Commodities trading
Sugar Trading via CFDs
With an astounding selection of over 100 instruments, Friedberg Direct gives you the option to trade many commodities. Use Friedberg Direct’s platforms powered by AvaTrade to trade Sugar CFDs, and see how sugar can sweeten not only your coffee, but also your account.
- Trade sugar with leverage
- Trade on an exclusive market 9.5 hours a day
- A unique and rarely traded commodity
- 24/5 technical support
- Trade with a Canadian regulated broker
- Both manual and automated trading platforms available
Start trading with Friedberg Direct and enjoy the benefits of trading with a regulated broker!
Sugar Trading Markets
Even though the sugar commodity is used around the world, its contract and price are determined in a few places. Sugar is traded on the Inter-Continental Exchange (ICE), the Kansai Commodities Exchange (KEX), the Brazilian Mercantile and Futures Exchange (BF&M), the National Commodities and Derivatives Exchange (NCDEX), the National Commodity Exchange Limited (NCEL), the Zhengzou Commodity Exchange (CZCE) and the Multi Commodity Exchange (MCX). There, sugar quotes are determined, and based on them traders perform their trades.
Unlike other instruments, sugar is not traded for days straight but only from 8.30 until 17.59 GMT. The months in which its quotes are changed are March, May, July, October and December. Its exchange symbol on the ICE US and on the MT4 platform is SUGAR#11.
What Influences the Price of Sugar
Unlike other commodities which are only used by individuals and specific industries, sugar is consumed all over the world and by most of the population. This has a major impact on the price of sugar:
- Supply and demand are, as usual, important to the process of determining the price of sugar. However, as mentioned, sugar is used by almost everyone, so more people have access and affect the price.
- Many bodies fight the use of sugar, as it is a cause of diabetes, obesity, teeth related issues and more. Countries that want to narrow sugar induced health problems can change their policy regarding sugar, which can bring about a massive change in its demand.
- A large portion of sugar comes from Europe. As a matter of fact, Europe is the second largest sugar exporter in the world. Should import and export rates change, it could affect the supply numbers which could lead to a massive change in sugar price.
- Today people are more and more aware of the dangers of sugar and look for alternatives, such as corn syrup and others. This could lead to fluctuations in sugar prices and more people looking for a new sweetener for their food and drinks.
Sugar CFD Trading
In order to understand sugar trading better, an example is in order. Say the price is $23.38 for each lbs., and the minimal position size must be of one hundred units, bringing it to $2,338 total.
However, as it is traded as a CFD, leveraged trading can be employed – $1 of the trader’s account for every $10 of the position’s value. That means the trader will need to invest $233.8 of his equity. Should the sugar price go up, the trader can benefit, and if it goes down, his investment fails.
Trading Sugar with Friedberg Direct
Sugar trading is a unique opportunity that can boost your trades. Like all commodities at Friedberg Direct, it is traded as a sugar CFDs and not the instrument itself. This opens up more opportunities and flexibility in the trades. If you want to add a cool and exclusive side to your trades – trading sugar with Friedberg Direct can be a good option for you!