The Trade is opened when ICE Sugar No.11 Futures are trading at 13.15 (Selling Price) - 13.20 (Buying Price) 1 TICK of Sugar No.11 is 0.01
You think the price is due to FALL Sell Sugar @ $50 per TICK @ 13.15
You think the price is due to RISE Buy Sugar @ $50 per TICK @ 13.20
With PIPTRADE you can choose the US$ value per tick
according to your risk preference. When you trade at $50 per
TICK, your profit or loss will change by $50 every time the
price of ICE Sugar No.11 Futures changes by 1 TICK (or 0.01)
The Trade is closed when ICE Sugar No.11 Futures are trading at 12.37 (Selling Price) - 12.42 (Buying Price)
Sell Sugar @ $50 per TICK @ 12.42
Buy Sugar @ $50 per TICK @ 12.37
Selling Price: 13.15
Buying Price: 12.42
Difference:
(13.15 – 12.42) = 0.73
Your loss on the trade is 73 ticks
Trade Size: $10 per TICK
(0.01 movement)
73 * $50 = $3,650 Profit
Buying Price: 13.20 Selling Price: 12.37
Difference:
(12.37 – 13.20) = -0.83
Your profit on the trade is 83 ticks
Trade Size: $10 per TICK
(0.01 movement)
This product is hugely dependant on exact weather conditions to be able to be produced. As a result it is a temperamental product and production is quarantined to 20 degrees north and south of the equator. This product needs a hot and rainy environment to flourish. The largest producers of Cocoa are Cote d'Ivoire and Ghana.
There are 2 diseases that can massively affect production and therefore pricing of this product they are black pod disease and "witch's broom" fungus. Another huge factor affecting the price of this product is the relative instability of the major producing countries. Political, social and labour issues all can have a large impact on its' pricing.
FALL
