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Agriculture Products

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What is agricultural products

     commodity contracts have a long history. The market for agricultural products is very interesting you can exchange there are well-known products, such as coffee, cotton and so on. You can profit from fluctuations in these products.

The history of agricultural products trading

     long before the North American commodity market was set up 150 years ago, farmers were selling the crops they planted. But there is no understanding of demand, supply often exceeds demand, and none of the purchased crops are discarded and rotted on the streets. However, when an agricultural product such as sugar is under the market, the product becomes very expensive because the crop is scarce and insufficient. By the middle of the 19th century, the cereal market was set up as a distribution center for farmers to trade agricultural products, where they could make immediate deliveries (spot trading) or forward deliveries. This is also the embryonic form of CFD today. In fact, the idea is to save large numbers of farmers from the doom of crop scrapping and to help coordinate the supply and price levels of the non-production season. With the rise of the market-trading model, the terms of each contract and the market regulations are followed by a big step forward. As spot and CFD transactions continue to grow and become a popular form of investment, other commodities are encouraged to join the team.

Why Trade agricultural products

Lucrative

    The market of agricultural products is an important part of the macroeconomic system, which provides the opportunity for investors to make profitable profits.

Independence

     more and more people recognize agricultural products as an independent asset class that is worth investing in, because their return model is independent of the performance of other asset classes. Investment in agricultural products can be derived through derivatives such as trading forward goods on commodity exchanges rather than buying off-the-shelf goods.

Leverage ratio

     in the idea of trading goods, you can use the high leverage ratio to obtain a greater proportion of the return.

Competitive price

     The property of such goods determines that there will be no market manipulation and insider trading.  

Liquidity Market

     produce does not belong to a liquid market and closes daily. So there will be a big difference between the closing price of the day before the opening and the opening of the next, but it will be very big if prices are volatile at the opening, especially shortly after the opening. Sharp fluctuations in prices can help you make a quick profit from it.