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Soft Commodities
Soft Futures are traded on the NYBOT Exchange. Below are the main Softs Futures that are traded, The value of each Price Increment Point (PIP) can be calculated by multiplying the PIP by the Contract Multiplier. The profit or loss of each trade can be calculated by multiplying the number of pips gained or lost by the contract multiplier.
When placing a Softs Futures trade the broker will take some money from your cash account and set it aside in your margin account. For example if you were to use a gearing ratio of 1:40 the broker would take 2.5% of the value of the contract and put it into margin. The estimated margin of trading each Softs contract is given below.
| Softs | Symbol | PIP | Contract Multiplier | PIP Value | Approx Margin |
|---|---|---|---|---|---|
| Coccoa | CC | 1.0 |
10 tons | $10 USD |
$3500 USD |
| Coffee | KC | 0.0005 |
37,500 Lbs | $18.75 USD |
$3500 USD |
| Cotton | CT | 0.0001 |
5,000 Bushels | $5 USD |
$2000 USD |
| Orange Juice | OJ | 0.0005 |
15,000 Lbs | $7.50 USD |
$1700 USD |
| Lumber | LB | 0.0001 |
80,000 BDFT | $8 USD |
$1700 USD |
| Sugar | SB | 0.0001 |
112,000 Lbs | $11.20 USD |
$2500 USD |
Disclaimer: This information is obtained from sources believed to be reliable. However, WorldCommodityExchange.com cannot guarantee its accuracy. Contract Specifications are subject to change. Margins are subject to change at any time, please consult your broker for additional information on current margin requirements and a suitable level of gearing.
Disclosure Statement
All markets have inherent risks. Futures and options markets are no different and involve substantial risk of loss and is not suitable for all investors. Investors may lose more than their initial investment. Past performance is not indicative of future results. Investors must employ suitable risk management strategies to ensure that they can preserve capital if they run into a series of losses.
