Corn futures are traded electronically on the Globex platform at 5,000 bushels per contract from 8:00 p.m. U.S. ET to 2:20 p.m. U.S. ET the next day. To trade corn futures, you’ll need a futures account that has been approved.
Is it possible to trade corn futures online?
Corn is ingrained in all of our lives, whether we realize it or not. The demand for ethanol has risen considerably as a result of recent oil price speculation. Demand for rice as a staple of the global diet and source of energy can only rise. There are two different contract denominations that can be traded:
Contract Expiration: To receive access to our web-based trading platform, request a free demo.
You will be able to read entire contract parameters, including First Notice and Last Trading Day, from within the web-based platform.
Margin requirements for open futures holdings are subject to vary and are required.
The CME Globex trading platform offers access to the corn futures market.
Open outcry trading takes place from 7:30 a.m. to 11:15 a.m. PT.
Electronic trading is available during open outcry trading and from 4:00 p.m. to 4:00 a.m. p.m. p.m. p.m. p.m. p.m. p.
Trading example: If you buy one contract of ZC at 600 and it goes to 610 the next day, you will make a profit of $500.
On the other hand, if it dropped to 590, you would lose $500. You can trade the small contract, which is 1/5 the size, for less risk and volatility.
What is the best way to invest in grain futures?
Your ordinary brokerage account can be used to purchase ETF shares. To trade grain futures, open and fund an account with a commodities futures broker who is a member of the National Futures Association. Consult a broker representative about your trading objectives.
How do you go about buying futures?
A futures contract is exactly what it sounds like. It’s a financial product, also known as a derivative, that involves two parties agreeing to trade a securities or commodity at a preset price at a future date. It is a contract for a future transaction, which we simply refer to as a contract “Future prospects.” The vast majority of futures do not result in the underlying security or commodity being delivered. Most futures transactions are essentially speculative, therefore they are utilized by most traders to profit or hedge risks rather than to accept delivery of a tangible good or security.
The futures market is centralized, which means it is conducted through a physical site or exchange. The Chicago Board of Trade and the Mercantile Exchange are two examples of exchanges. Traders on futures exchange floors deal in a variety of commodities “Each futures contract has its own “pit,” which is an enclosed area designated for it. Retail investors and traders, on the other hand, can trade futures electronically through a broker.
What factors influence corn futures pricing?
Corn is priced in dollars and cents, with a minimum tick size of $0.0025 (one-quarter of a cent), equating to $12.50 per contract. 3 While the market may not be able to trade in smaller units, it may surely trade in full cents during “rapid” markets.
Is there a soybean exchange-traded fund?
ETFs that track soybean futures contracts are known as soybean ETFs. In the United States, SOYB is the sole ETF available. Soybeans ETF has a total asset under management of $69.75 million and is traded in the US markets. 1.88 percent is the average expense ratio.
What is the purpose of corn trading?
Maize is of particular interest to many traders at the present, as factors such as increased export demand, improved corporate results, and tighter-than-expected stocks have pushed corn prices higher in recent weeks. We’ll take a deeper look at a few charts that active traders frequently utilize to profit from an increase in maize prices in the paragraphs below.
Are you able to speculate on corn prices?
The use of a contract for difference (CFD) derivative instrument is one technique to trade corn. Traders can bet on the price of maize using CFDs instead of holding the underlying asset. The difference between the price of corn at the time of purchase and the current price is the value of a CFD.
CFDs on maize are available from a number of regulated brokers throughout the world. Customers make a deposit with the broker to serve as margin. CFDs offer traders the ability to gain exposure to corn prices without having to buy shares, ETFs, futures, or options.
Is there a commodity ETF?
With $59.52 million in assets, the iPath Series B Bloomberg Grains Subindex Total Return ETN JJG is the largest Grains ETF. The best-performing Grains ETF in the previous year was GRU, which gained 57.31 percent.