Frequently Asked Questions

• 1.  

  What is sugar commodity trading?

  Sugar commodity trading is common around the world, as it is used for daily consumption as well as for various industries. When it comes to trading CFDs on sugar, investors trade on the price movements, and aim to make profits without owning or physical delivery the underlying assets.

  Sugar as a commodity is traded either physically or through future contracts on the following exchanges:

  • Intercontinental Exchange (ICE)
  • Kansai Commodities Exchange (KEX)
  • Brazilian Mercantile and Futures Exchange (BF&M)
  • National Commodities and Derivatives Exchange (NCDEX)
  • National Commodity Exchange Limited (NCEL)
  • Zhengzhou Commodity Exchange (CZCE)
  • Multi Commodity Exchange (MCX)

  With sugar cfd trading, traders can benefit from leverage, and invest small capital for larger positions. However, leverage also amplifies the risk, as it can magnify both potential profits and losses. Traders may lose more than their initial investment if the market moves against them. It is essential to fully understand the risks involved and trade carefully within your risk tolerance.

  2.  

  How can I trade sugar futures?

  Trading sugar futures means trading contracts for a set quantity of sugar, with a predetermined price on a date in the future.

  To start sugar futures trading, you need to follow the below steps:

  • 1. Find a broker that offers sugar futures.Make sure to compare the offers of different brokers, and choose the one that offers the most competitive conditions.
  • 2. Understand Sugar Futures Contracts
    Standard Contract: Typically represents 112,000 pounds (50 metric tons) of sugar.
    Trading Hours: 08:30 – 17:59 GMT on ICE US.
    Expiration Months: March, May, July, October, December.
  • 3. Study the markets carefully, and understand the factors that influence the prices of sugar to make more informed decisions. Remember that sugar prices are affected by weather conditions, global productions and ethanol demand as well as government policies.
  • 4. Place your order and set a stop loss. You can hold your contract until expiration (if you're a physical trader) or close it before expiry to take profits or cut losses.
  • 5. If you do not want to deal with expiration dates, you can choose to trade sugar CFDs instead.
• 3.  

  What are the trading hours for sugar futures?

  You might be wondering when to invest in sugar. Let us start with sugar futures.

  Here is a general overview of the trading hours for wheat futures:

  • Sugar futures trading follows specific exchange hours, primarily on the Intercontinental Exchange (ICE US):
    
    Trading Hours (ICE US - Sugar No. 11 Futures)
    08:30 – 17:59 GMT (Monday to Friday)
    
    Pre-Open Session (Before Trading Begins)
    07:30 – 08:30 GMT
  • The expiration dates for sugar contracts are in the following months:March, May, July, October, and December.

  Investors should also be aware that they cannot trade sugar futures on weekends as trading is closed. The same applies for specific holidays. Other exchanges, like MCX (India) or CZCE (China), may have different trading hours.

  4.  

  What are sugar CFDs?

  If you don’t want to deal with contract expirations or large capital requirements, sugar CFDs offer a flexible way to trade sugar price movements with leverage and lower costs.

  As it has been previously clarified, sugar cfd trading allows investors to speculate on the prices of sugar without going through the hassle of owning the underlying asset or dealing with expiration dates.

  Here is a brief of the mechanism how CFDs work:

  • After you choose a CFD broker, you can enter a contract for difference. Through this contract, you can exchange the difference in the price.
  • You set a buy order or a sell order depending on the movements of the price.
  • You monitor the trade and set any adjustments needed.

  Sugar CFD trading offers the following benefits for traders

  • No hassle of owning the underlying asset.
  • Trade with a smaller capital investment through leverage.
  • Trade various assets at the same time.
  • No expiration date.
• 5.  

  Is sugar considered a commodity?

  Yes! Sugar is a commodity. It is a raw material that is sold and bought in the global markets. Widely used in daily consumption and various industries, the sugar demand is on the rise.

  In the trading world, we have two kinds of commodities, the soft commodities and the hard commodities. Hard commodities are natural resources that are mined or extracted from the earth. Soft commodities are agricultural products like coffee, cacao, coffee and beans.

  Based on the above sugar is a soft commodity. There are mainly two types of sugar commodities:

  • Raw Sugar (Sugar No. 11) – Traded on ICE US, used for refining.
  • White Sugar (Sugar No. 5) – Traded on ICE Europe, used for direct consumption.
  6.  

  Which trading platforms offer sugar trading?

  You can do sugar trading on various sugar trading platforms. Most brokers allow you to trade sugar CFDs through the following platforms:

  • MetaTrader 4 (MT4) & MetaTrader 5 (MT5)
    Widely used, MT4 and MT5 platforms offer sugar CFD trading. With advanced charting tools, automated trading options, and flexible order execution, sugar trading through these two platforms can offer a great potential for growth.
  • Trading Apps
    In addition to the MT4 and the MT5, many brokers offer trading apps. Some are mobile-based, while others are web-based. Investors can trade sugar CFDs on the go with these apps. The benefits of these apps are that they offer real-time market access, price alerts, and risk management tools.
• 7.  

  How do I contact support for sugar CFD queries?

  Brokers should offer support around the clock to address any concerns or enquiries that traders have. If you want to invest in sugar, you need to search for a broker.

  Here is a checklist to follow when search for the best- fit broker

  • Choose a broker that has competitive trading conditions.
    From flexible leverage, to faster execution, multiple account types, smooth withdrawal, and tighter pip, these conditions can make all the difference in your trading journey.
  • Choose a broker with an excellent system for support.
    Whenever faced with a problem or with a concern, you need support that is easily accessible and has extensive knowledge in the field.
  • Choose a broker with good reviews
    Online reviews on online platforms can give you a great idea about the experiences of previous traders with a broker.

  STARTADER offers support around the clock in 20+ languages. You can easily reach the support through the email or the live chat.