When traders are asked what raw materials they are trading on, they are usually called gold and oil. The fact that it is best site their possible to trade with sugar is not even known to most traders, although the white gold is found in every household. Perhaps this neglect of the raw material sugar is also due to the fact that in the news hardly anything about it is reported. On the other hand there are daily news about the oil and gold price. In fact, sugar is a very quiet raw material, but it is underestimated. Here are sweet returns.
At the moment, only a few binary options brokers offer the raw material sugar as the underlying, because sugar, unlike oil or gold, is less viewed as a speculative object. This is because the overwhelming part of the producer countries produce the sugar for their own needs. Of course the way check out this site international sugar trade is necessary because not every country produces sugar and consequently the raw material has to be imported. Only the European Union, South Africa and Brazil are among the net exporters. As a matter of principle, the sugar price is determined by supply and demand, but without significant effects of future speculation. Nevertheless, binary options can be traded on the white gold.
Sugar out read this post here is not an integral part of the food industry. Many countries have already begun sugar production many thousand years ago, and only highly industrialized countries with little agricultural land have stopped production in the 21st century and are importing sugar.
The producer countries consume their own sugar and often sell the surplus on the world market. In rare cases, sugar is also imported when, for example, your domain name way a weak crop was produced in the country. Only about 30 percent of the total production comes into the market, where there is free price formation, but there are some regulations.
The countries of production rarely earn sugar. On the other hand, importing countries regularly buy sugar, which keeps the price stable. Sugar is traded on the raw and white sugar market, the raw sugar market of Brazil and the white sugar market being speaking of because dominated by the European Union. After a little deregulation of the white sugar market as part of the EU agricultural reform in 2006, prices were also more volatile.
The sugar market is therefore balanced and is partly regulated, which is why range options are offered here. On occasion, strong trends are spreading over a long period of time, such as in the period from June 2011 to January 2012. The price rose by around 150% and then fell sharply. If you recognize such a trend and then rely on a long-term call option, you would make a big profit.
As a rule, the price fluctuations of the sugar are very low, which is why experts recommend to opt for longer trends. Often, the prices fluctuate by only one to two percent for weeks. You can not expect high price jumps, which is of course interesting its active for the breakout trading. On the other hand, touch options do not work. my response come
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It should be noted, however, that an important aspect of the sugar price plays an important role. Because this is regulated. Due to the fact that sugar is of great importance in the food industry, the producer countries have agreed on the ACP sugar protocols through the price corridors. Although it covers only 15 to 20 per cent of the sugar, this also provides the important benchmark. This is where the exporters have to orient themselves. For this reason, binary options for long-term sugar are posted to call or put options, alternatively as a range option.
As a rule, professional traders initially trade in currency pairs, stocks, indices or commodities such as gold and oil. In order to be able to position the portfolio more widely, asset sugar is try this out take usually traded later. To this extent, sugar serves as a good admixture to create a diversified portfolio.