COFFEE futures and options are certainly filled with action. radius and the day-long coffee trading can be very challenging. points of support and resistance can work very well. The cocoa and orange juice are best taken for the long haul. Liquidity is limited in all three, but still enough to move and with your dignity.
For about $ 2800 of deposit account, you can check a contract worth 37,500 pounds of coffee, about $ 45,000. A 1-cent-step is equal to $ 375. (Example: a step 120-121)
If the market is justified for a coffee, you can rip through the support and resistance points easily. He stops usually work well, but you can always shift with the NYBOT. Coffee futures and options for a very short time each trading day. (9.15 bis 12.30 Clock EST) The opening is false in general. Many times the market signals have suggested small steps in one direction. When she opened it, the reality was a huge movement in the opposite direction.
Based on the LIFFE, London> Movements in the sugar futures market for coffee, cocoa and overnight market. You can go online for quotes delayed. These references are prices of European and African situations. You may not directly to our trading partners in the United States, but are a rough guide at night.
The coffee is traded as low as 40 cents per pound in 2001 and as high as 337 in 1977. Most of the time coffee is in a holding pattern following short sequences in one direction. Unless you alreadypositioned, these moves cutting edge difficult to start as soon as they get. You have to maintain confidence in your analysis and are safe.
In the past, coffee has taken a huge move on Spikes. This type of movements that can make a lot of money, if done well. Brazil is the country of supply and demand to see the problems. However, the quality of their coffee is not high enough for the contract specifications. Despite this, a block or a fault or send pricesFlies.
COCOA
cocoa futures and options also trade on the NYBOT web. Cocoa is not as volatile as the coffee. Novices often cocoa trade, because it is relatively liquid and not a large margin requirement. The market does not usually make big moves, but do not underestimate its potential. Various political forces in unstable regions of Côte d'Ivoire and the West Coast of Africa can dramatically increase or decrease the price of cocoa during the night.
For about $ 1200, you can control 10 tTons of cocoa, worth about $ 16,000. A move of 100 points by the same $ 1000. (Example: 1600-1700)
Cocoa is as low as $ 800 per ton in 2000 and traded as high as $ 5,300 in mid-1970. A move 300-500 dollars per ton as well. ($ 3,000 - $ 5,000) Cocoa is a great vehicle trading day. There are better markets for day trading are.
Cocoa options are a bit 'difficult to enter and exit. A nine point fifty-five bid and is the differenceStandard. It is best to set aside close to the theoretical value for a fair price.
Cocoa has a short trading hours. (8:00 to 11:50 Clock) For she is the first product in the morning, open the file. For those of you who stay too late, select a different product. Most of the major cocoa and draws the best prices come directly from the opening.
ORANGE JUICE
Orange juice is a market-oriented firm. There was a time in 1980, when the cold of January, like clockwork. Traders would invitefreezing of the positions in late autumn to find. Then in normal mode, changed the market.
For about $ 2,200, you can control, 15,000 pounds of orange juice with a value of about $ 30,000. Complete a move of 10 points is $ 1500. (Example: 210 to 220)
Juice prices were as low as 32 cents per pound in 1971, and as high as $ 2.20 in 1977. The high occurred when a devastating ice storm hit Florida.
Until a few years ago, orange juice was a bear market for a relentless Decade. Certainly his contributions in 1990. It 'was an excellent choice for writing market at this time. According to these great depths, was the production of acid at an historic high in 2000. The juice has been hurt worse and worse news that harvest after harvest forever. A freeze in Florida can go to market wild. But recently have had more influence than crashes hurricanes.
Orange juice has a limited potential trading day of the problems due to the lack of liquidity. Even if it's on the day> Shop you can. The juice market is usually traded in the best locations for long-term support. Market trends well, and often reaches the target. It tracks well with the timeline.
It 'an interesting point is that the Florida orange juice are used, and oranges of the most widely used California as a fruit. can frozen orange California have such a bad little impact on the juice market. The other major supplier of orange juice is Brazil. We must be vigilant of weather and crop sizefor both the Brazilian and U.S..
Recently juice prices have a great run from 54 cents in July 2004 was $ 2.10 in December 2006. This was a move saved $ 23,000 for each contract. During this demonstration of the rebates normal course of about 20-25 cents. Some retailers, such as the location to add the positions on both similar decline. This can be an effective strategy for long-distance trade. (Instead of buying breakouts)
Orange Juice options are liquid enough, but can be exchanged efficiently.Expect to compile reports to be slow, but the comments are fair in general, if the market is active. Just note that the NYBOT market action. (NY)
Good Trading!
There is a substantial risk of trading futures and options of loss and may not be suitable for all investors. Only risk capital should be used.
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