Spread Betting on Soybean

Where to Spread Bet on Soybean

Commodities
Gold (spread size)	4	5	5	4	4	4	4
UK Crude Oil (spread size)	5	5	4	4	6	4	5
Commodities (min stake)	£1	£1	£1	£1	£0.50	£0.50	£1
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Commodities News and Analysis

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Soybean Spread Betting Prices and Charts

• Capital Spreads
• City Index
• ETX Capital
• Financial Spreads
• GFT
• IG Index
• InterTrader

How to Spread Trade Soybean

The Spread Betting Market	Soybean (March) Futures
The Spread	$1,221 - $1,223
This Means	You can spread bet on the Soybean Futures market closing:   Higher than $1,223, or   Lower than $1,221 At the close of trading on the closing date for this 'March' futures market, 20 February 2012. It should be noted that, because this is a futures trade, your position will be automatically closed when the March Soybean futures market expires, 20 February 2012. However, you can also decide to close your trade prior to the expiry date.
Trading Units	Futures bets on the Soybean market are made in £x per $1. Where $1 is $1 of the commodity's price movement. E.g. if Soybean moves $40 then you would gain or lose 40 times your stake.
Stake Size	You work out your stake per $1, e.g. £1 per $1, £4 per $1, £20 per $1 etc.
Quick Staking Exercise	With that in mind, if you decided on a stake of £4 per $1 and Soybean changes by $28, you would lose or win £4 per $1 x $28 = £112.

Spread Betting Example | Taking a Long Position on Soybean

You Work Out Whether to Go Long or Short	Does your research lead you to believe that Soybean will finish at on 20 February 2012:   Higher than $1,223? or   Lower than $1,221?
You Might Want to Buy	Higher than $1,223
You Select Your Stake Size, Choosing	£3 per $1
What Happens Now?	You will win £3 for every $1 Soybean settles above $1,223 Your trade loses £3 for each $1 Soybean settles lower than $1,223
When Spread Betting on a Market to Rise Your Profit or Loss =	(Settlement Value - Initial Value) x stake per $1
Trading Example 1	Soybean increases and the market is revised to $1,254 - $1,256.
Close and Take Your Profit?	You may choose to keep your futures spread bet open until expiry or close it, i.e. close your trade to lock in your profit. In this example you choose to close your trade at the current rate by selling at $1,254.
Your Profit or Loss =	(Settlement Value - Initial Value) x stake per $1
	($1,254 - $1,223) x £3 per $1
	$31 x £3 per $1
Your Profit or Loss =	£93 profit
Trading Example 2	Soybean drops and the spread betting market adjusts and moves to $1,187 - $1,189.
Time to Restrict Your Loss?	At this point, you may opt to keep your bet open until expiry or close it, i.e. close your trade to limit your losses. In this example you opt to close your position early and sell at $1,187.
Your Profit or Loss =	(Settlement Value - Initial Value) x stake per $1
	($1,187 - $1,223) x £3 per $1
	-$36 x £3 per $1
Your Profit or Loss =	-£108 loss

Worked Spread Trading Example | Going Short of Soybean

You Decide to Buy or Sell	Your research leads you to believe that Soybean will close on 20 February 2012:   Higher than $1,223? or   Lower than $1,221?
Let's Assume You Decide to Sell	Lower than $1,221
You Select How Much to Risk, Let's Say You Select	£2 per $1
So What Now?	Your trade loses £2 for each $1 Soybean closes higher than $1,221 You will win £2 for each $1 Soybean settles below $1,221
When Selling a Spread Bet Your Profit or Loss =	(Initial Value - Settlement Value) x stake per $1
Trading Example 3	Soybean moves lower and the financial spread betting market is revised and moved to $1,166 - $1,168.
Take a Profit?	You could choose to keep your futures trade open until expiry or close it to take a profit. In this example you decide to settle your position now by buying the market at $1,168.
Your Profit or Loss =	(Initial Value - Settlement Value) x stake per $1
	($1,221 - $1,168) x £2 per $1
	$53 x £2 per $1
Your Profit or Loss =	£106 profit
Trading Example 4	Soybean pushes higher and the quote for the financial spread betting market changes to $1,282 - $1,284.
Close and Restrict Your Loss?	You may opt to let your bet run to expiry or close it, i.e. close your position and limit your loss. For this example, you opt to settle your position by buying at $1,284.
Your Profit or Loss =	(Initial Value - Settlement Value) x stake per $1
	($1,221 - $1,284) x £2 per $1
	-$63 x £2 per $1
Your Profit or Loss =	-£126 loss

Soybean Notes:

• Online spread betting price obtained from InterTrader on 2 February 2012
  
  
• Soybean is traditionally priced in dollars per 60lb bushel
  
  
• Investors can also choose to spread bet on Soybean in euros/$1 and dollars/$1
  
  
• In addition, financial spread trading also allows you to access a broad range of other asset classes, for more details also read:
  
  
  • Stock Market Indices
  • Spread Trading on Foreign Exchange
  • Shares Spread Betting

Demo Accounts for Spread Betting on Soybean

Spread Betting
Demo Account

Spread Betting on Commodities

• Spread Betting on Commodities
• Spread Betting on Gold
• Spread Betting on Crude Oil