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: $50 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: $50 per TICK
(0.01 movement)
Brazil is the largest producer of coffee followed by Vietnam, Columbia and Indonesia. Coffee is a globally used product that has huge imports and exports around the world on a daily basis. As there is such a high demand for this product it does tend to have a more liquid market condition than some other commodities.
This commodity is prone to rallies in the summer months due to the unpredictable yet expected Brazilian "freeze" conditions, which occur on average every 5 years or so.
FALL
