All about investment

By: Daniel Jones

If you are looking to spread bet on coffee then there are a few facts that you should note.

1)The two main types of coffee that are traded are Robusta and Arabica

a.Robusta is generally traded on the London International Financial Futures and Options Exchange (LIFFE)
b.Arabica is generally traded on the Intercontinental Exchange (ICE)

2)Arabica Facts

a.Arabica is also known as Coffea Arabica or Coffee “C” when referring to coffee futures
b.When Arabica coffee cherries ripen they fall to the ground and spoil
c.Arabica accounted for around 60% of world coffee production. Brazil and Colombia produce the majority of the world’s Arabica supply

3)Robusta Facts

a.Robusta is also known as Coffea canephora and Conillon
b.It is considered to be of a lower grade than Arabica. It has twice the caffeine and produces an inferior taste
c.The Robusta plant is easier to take care of and has lower production costs. When its coffee cherries ripen they remain on the plant
d.The Robusta plant is less susceptible to disease than Arabica
e.The Robusta plant can grow in areas where Arabica cannot
f.Robusta accounts for approximately 40% of global coffee production. Vietnam and Indonesia produce 50% of the world’s Robusta

4)According to the International Coffee Organisation (ICO), last year saw coffee production down 7% to 118,000 million bags

5)Coffee is measured in 60kg bags

6)As Anthony Grech of IG Index recently reported “It is also important to note that the production of both coffee types, as with any agricultural commodity, is primarily dependent on weather conditions, harvesting practices and disease. Therefore monitoring these variables, particularly in the major coffee producing countries, will provide an understanding of coffee supply and its intrinsic value, when compared with demand”

7)Key players in the market are Procter and Gamble, Kraft, Nestle and Sara Lee. Together this ‘Big Four’ buys most of the world’s raw coffee. Therefore monitoring the buying habits of these companies would help provide a better understanding of coffee demand. From a micro perspective, marketing and profit margins and also play an important role in driving demand

8)You can spread bet on both Arabica Coffee “C” and Robusta with spread betting companies like WorldSpreads and IG

9)Note that coffee is traded in US dollars. That means one of the biggest factors affecting the price is the exchange rate, just like Crude Oil and Gold. Because coffee is traded in US Dollars then, all things being equal, Coffee will tend to follows the dollar exchange rates. If the Dollar goes down against the Euro, the price of Coffee should go up and vice versa.

10)Finally, it is worth noting that demand for coffee is considered to be price inelastic. This means that when coffee prices increase, individuals do not proportionally reduce their coffee consumption, and when coffee prices decline, consumer demand for coffee does not proportionally rise to any great extent


Before you start trading coffee note that spread betting carries a high level of risk to your funds. You can lose more than you initially invest. It may not suit all investors. Only speculate with funds that you can afford to lose. Ensure you understand the risks and seek independent financial advice if and when necessary.

Based in the heart of London’s financial district, Daniel Jones is a professional commentator for some of the leading financial spread betting websites.



Investments Article Source: http://www.eArticlesOnline.com

By: Jim Wilson

Forex trading is relatively new compared to other forms of investment. Take the time to understand the key advantages to this form of investment. Keep an open mind and see how it may fit into your investment strategy.

The Forex trading system is a 24-hour based market, giving you flexible access to it at any time of the day or night. This differs drastically from the stock exchange, because there are no worries about the market closing when you still feel like trading. The market is continuously changing, online forex websites provide you with instant real time access to the market whenever you wish. This really helps in learning the market basics.

You'll also be provided with tools that will help you understand the mechanics of trading. This is clearly a bonus! You can practice your trading to your heart's content without risking any of your own money.

You can move from a novice to an expert in forex trading after you take advantage of the free demonstrations, currency trading news and free guidance provided by the forex companies. Once you feel you are confident enough to trade and invest a little amount of your money, sometimes in as little as $200, you can start taking advantage of the many forex trading benefits.

Because the forex websites shorten the learning curve associated with currency trading, you don't need your PhD in economics to be successful. Intermediaries, called forex brokers, will provide an access point to the currency market for you.

Forex brokers provide similar services as stock brokers. They will provide you with tips and advice as well as strategy information. The type of advice provided includes research methods and technical analysis data. Without a doubt, forex provides a great return on investment. It is no wonder that large financial institutions try to monopolize the marketplace.

Great results are still available for the small time individual investor, because of easy access to the web. The online Forex trading firms, as mentioned earlier, have been giving out free website tools for you to familiarize and navigate the whole concept of the market.

Your choice of Forex trading broker will largely depend on your need in the trading market. Many forex internet sites provide a bevy of tools for the beginning trader including detailed research, online trading simulators, and expert technical advice. In some cases these websites also provide access to professional forex traders, who will bring their expertise to traders of all levels. Everyone can try these tools to see if it meets their needs.

As you take the time to learn forex trading it opens one more investment door for you. As you continue to realize the importance of diversifying your investment portfolio, it may be a good idea to begin looking at what kinds of opportunities are available to you in foreign exchange trading. You'll be surprised to see who else is capitalizing on this market and just how easy it is.
The Forex market is not only the world's largest financial trading market but is also an extremely lucrative market. Find out more about the hottest investment revolution in the past decade.

Jim Wilson gives you more free information at Automated Software Forex. Search other helpful articles at- Automated Software Forex Articles. Click here http://www.forexminitrading.com

Article Source: http://www.eArticlesOnline.com