CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Between 54-87% of retail CFD accounts lose money. Based on 69 brokers who display this data. *Availability subject to regulation.
Corn is one of the most important crops throughout the world, and one of the most highly traded commodities in the market. It is cultivated across the globe and is produced in much higher weights than any other grain.
The world’s total corn production in 2016 was 1.05 billion metric tons. The United States were the leading producers, accounting for 37% of the world’s total corn production. Their corn belt, which has been producing corn since the 1850s, is mainly responsible for the US’s predominance in corn production. China followed with a 21% share of the global total, and other major corn producing countries included Brazil, the EU, Argentina, Ukraine, and India.
Corn has been primarily used as a source of food for thousands of years; however, it has also become an important source of fuel in the past few decades. Almost 40% of corn is used for producing Ethanol, an alcohol that has become a primary component of gasoline.
This has led to a direct relationship between the demand for corn and ethanol. If the demand for ethanol rises, the demand for corn will ultimately rise.
Climate can also affect the short and long term prices of corn. Corn has very low resistance against unstable and severe climate changes, and such changes in climate can lead to a decrease in production and thus, an increase in price.
Another considerable factor is demand from the Chinese market. China is the world’s largest producer and consumer of energy and has been since 2010. China’s inclination towards producing clean energy can lead to an increased demand for biofuels like ethanol, and consequently, an increased demand for corn.
Corn can be traded through contracts for difference (CFDs) and futures contracts. Traders usually do not want to take delivery of the actual commodity, and so these products enable a trader to speculate on the price of corn without having to physically own the commodity.
Corn futures contracts are offered by the Chicago Mercantile Exchange (CME) and these are one of the most highly traded agricultural contracts, with an average volume of several billion dollars each day.
In the case of CFDs, if a trader believes the price will rise, they can go long, or buy contracts, and if they believe the price will go down, they can sell or short contracts. Regulated brokers such as AvaTrade and Plus500 offer corn as a CFD, and the CFD is actually based on the price of the CME futures contract.
Corn futures are traded under the ticker symbol ‘C’ on the Open Outcry market and under ‘ZC’ on electronic markets. Like any other commodity, corn futures contracts have their own margin requirements and contract value.
CFDs are a convenient way of trading corn as minimum positions can be quite low. CFDs involve speculation from a trader on whether the price of the underlying commodity (corn) will rise or fall. Plus500 offers a leverage of 1:152, with a minimum trade of 10,000 bushels and spread of 0.50. So a margin of just £175 is required to expose a trader to £26,451 worth of value.
Priced on the basis of immediate delivery
Trades are settled instantly
Delivery issues are mostly unpredictable and can suddenly arise
Priced on the basis of a forecast of future pricing
Position can be kept open but is subject to time
Volatility factors are comparatively more predictable
Forex.com scored best in our review of the top brokers for corn , which takes into account 120+ factors across eight categories. Here are some areas where Forex.com scored highly in:
Forex.com offers one way to tradeForex . If you wanted to trade CORN
The two most important categories in our rating system are the cost of trading and the broker’s trust score. To calculate a broker’s trust score, we take into account a range of factors, including their regulation history, years in business, liquidity provider etc.
Forex.com have a AAA trust score . This is largely down to them being regulated by Financial Conduct Authority, segregating client funds, being segregating client funds, being established for over 19
|Regulated by||Financial Conduct Authority|
|Uses tier 1 banks|
|Segregates client funds|
Want to see how Forex.com? We’ve compared their spreads, features, and key information below.
|GBP/USD Spread||0.9||DAX Spread||250.0|
|FTSE 100 Spread||150.0|
|Platform||MT4, Web Trader, NinjaTrader, Tablet & Mobile apps|
|Base currency options||USD, GBP, EUR|
|Funding options||Bank transfer, Cheque, DebitCard,|