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Facts About Manufacturing

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Category: Commodity

Commodities are traded primarily based on margin and the margin adjustments primarily based on the market volatility and the present face value of the contract. For example, a coffee contract on the Intercontinental Trade may require a margin of $4,900, which is roughly 10% of the face value ($4,900/$48,562.50), Sustaining the minimum amount of margin required by the dealer, which on this case equals $4,900, provides an investor the flexibility to manage a large position despite a relatively small capital outlay. (For extra on how markets work for any such commodity, see The Candy Life Of Mushy Markets.)

Coffee Exchanges

The futures contract for espresso is traded on the Brazilian Mercantile and Futures Exchange (BM&F), Intercontinental Exchange (ICE), Kansai Commodities Exchange (KEX), Multi Commodity Exchange (MCX), Nationwide Commodity and Derivatives Exchange (NCDEX), Singapore Commodity Alternate (SICOM), Tokyo Grain Exchange (TGE) and NYSE Euronext.

Facts About Manufacturing

While espresso manufacturing occurs all over the world, major manufacturing is dominated by countries reminiscent of Brazil, Vietnam, Indonesia and Colombia. Each of these international locations has built a thriving business based mostly on exporting espresso around the world. In 2005, Brazil produced 2 million metric tons of espresso beans, which is over twice as much as Vietnam, its nearest competitor.

The two forms of coffee beans are Arabica and Robusta. Arabica beans are considered probably the most flavorful and in turn command a premium out there place. Robusta beans tend to be more bitter and fewer palatable, but they have a 50% greater focus of caffeine than Arabica beans.
U.S. Government Required Disclaimer - Commodity Futures Trading Commission

Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. All trades, patterns, charts, systems, etc., discussed in this advertisement and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author and do not necessarily reflect those of the publisher or Tradewins.