CFD Trading: Cocoa

Cocoa is a commodity; the most production is from Africa but new market as China and India are up-coming markets.

Cocoa is used in chocolate and related products.

In recent years are the interest on chocolate and health increasing.

Pricing

The price on the global market is volatility; in the African nations is the price fixed to protect the farmers and to improve the quality of the cocoa production.

The Fixed price is called fair-trade; a fair-trade price is a fixed price plus a premium; is the global price lower than the fair-trade price are the farmers paid the fair-trade price; is the global price higher than the fair-trade price are the farmers paid the global price plus the premium.

The price volatility between 2011 and 2014

The price of cocoa has between 2011 and 2014 been among 2575 and 2925 dollars.

CFD trading and cocoa

Cocoa is in the section commodity on the online trading platforms; in the last year has the price been among 2700 and 2900 dollars. Is means that each contract is worth as an example 2900 dollars if the price is 2900 dollars.

CFD is a leveraged product which means that an investment in a cocoa contract only cost 29 dollars if the price is 2900 dollars on each contract.