Soybean Spread Betting


cf_market_short Trading Guide

The CleanFinancial guide to Soybean spread betting.



Where Can I Spread Bet on Soybean?

At the moment, investors are able to spread bet on the Soybean market by opening an account with the following spread betting firms:



Soyabean Trading News

4 April 2018, 11:27am, Updated Soybeans COT Report

The latest Commitments of Traders Report (COT) for Soybeans has been released by the CFTC, see our Soybeans COT report below.

We have also updated our Commodities COT Summary Report.

Update by Gordon Childs, Editor, CleanFinancial
4 April 2018, 8:48pm, Updated Soybeans COT Report

The latest Commitments of Traders Report (COT) for Soybeans has been released by the CFTC, see our Soybeans COT report below.

We have also updated our Commodities COT Summary Report.

Update by Gordon Childs, Editor, CleanFinancial

» For more see Commodities Trading News & Analysis.



Live Soybean Chart & Prices

The following CFD chart offers readers a handy guide to the Soybean market.


The Plus500 chart above typically tracks the underlying Soybean futures market.

If you want to study live spread trading charts/prices for Soybean, you will generally require a spread trading account (readers should note that all accounts are subject to status and credit checks).

If your application is accepted then, once logged in, you will be able to look at the live trading prices and charts. On most platforms, these are provided for free. Having said that, you could receive the odd call and/or letter from your spread trading company.

If you do decide to trade then, before starting, be aware that financial spread betting and contracts for difference do involve a high degree of risk to your funds and it is possible to lose more than your initial deposit.

Professional Level Charting Packages for Soybean

Although charting software/packages tend to vary from firm to firm, the charts often have features and tools such as:

  • Many different time periods – 30 minutes, 2 hours, 1 month etc
  • A variety of display options – line charts and candle charts
  • Tools for adding features – Fibonacci retracements and trendlines
  • Indicators and chart overlays – Moving Average, RSI, Standard Deviation etc
The charts provided by CapitalSpreads also include advanced features like:

  • Back Testing tools
  • Custom email alerts that trigger when your chosen market reaches a pre-determined price

Financial Spreads commodities candlestick chart



The spread trading brokers in the following list give their clients real-time trading charts and prices:



Advert: Soybean Spread Betting, sponsored by FinancialSpreads.com.
You can spread bet on Soybean with Financial Spreads.


Where Can I Trade Soybean for Free?

Investing, by its very nature, always involves an element of risk, but if you want to open a (free) Test Account, that lets you trial spread trading and use trading charts, then please see below for more details.

When deciding which investment option is right for you, don’t forget that financial spread betting in the UK is tax free*, i.e. there is no income tax, capital gains tax or stamp duty.

If you are trying to find a free trading platform, note that investors are able to spread bet on Soybean futures without paying any commissions or brokers’ fees through companies like:


Free Demo Account

If you are looking for a completely free Test Account to try online spread betting, including markets such as the Dow Jones, USD/JPY, EUR/USD and Soybean, then have a look at:

Each of the above firms offer a Test Account that allows users to try out trading ideas, make use of charts and practice with an array of trading orders, e.g. OCO and GFD orders.


How to Spread Bet on Soybean?

As with a wide range of markets, it is possible to spread bet on commodities futures, like Soybean, to either increase or decrease.

Looking at the Financial Spreads platform, they are currently pricing the Soybean July Futures market at $1,474 – $1,477. This means you could spread bet on Soybean:

  Soybean Spread Trading Example Closing higher than $1,477, or
  Soybean Spread Betting Example Closing lower than $1,474

On the expiry date for this ‘July’ market, 20-Jun-12.

Whilst financial spread trading on Soybean you trade in £x per $1. Therefore, if you chose to risk £6 per $1 and Soybean moves $27 then that would change your P&L by £162. £6 per $1 x $27 = £162.


Soybean Futures – Commodity Spread Betting Example

Now, if you think about the above spread of $1,474 – $1,477 and make the assumptions that:

  • you have done your analysis of the commodities market, and
  • you feel that the Soybean market will settle above $1,477 by 20-Jun-12
then you could choose to buy at $1,477 for a stake of £2 per $1.

So, you win £2 for every $1 that Soybean pushes higher than $1,477. However, such a bet also means that you will make a loss of £2 for every $1 that the Soybean market goes lower than $1,477.

Considering this from another angle, if you were to buy a spread bet then your profit/loss is found by taking the difference between the settlement price of the market and the initial price you bought the market at. You then multiply that price difference by your stake.

So if, on the expiry date, Soybean finished at $1,514, then:

Profit / loss = (Settlement Level – Initial Level) x stake
Profit / loss = ($1,514 – $1,477) x £2 per $1
Profit / loss = $37 x £2 per $1
Profit / loss = £74 profit

Speculating on commodities, whether by spread betting or otherwise, is not always simple. In the above example, you had bet that the commodity would go up. Nevertheless, the commodity can also fall.

If Soybean had fallen and settled lower at $1,433, you would end up losing on this market.

Profit / loss = (Settlement Level – Initial Level) x stake
Profit / loss = ($1,433 – $1,477) x £2 per $1
Profit / loss = -$44 x £2 per $1
Profit / loss = -£88 loss

Note – Soybean July Futures commodities market taken as of 26-Apr-12.


Advert: Soybean Spread Betting, sponsored by FinancialSpreads.com.
You can spread bet on Soybean with Financial Spreads.



Soybeans Commitments of Traders Report – 3 Apr 2018 (i)

Futures Only Positions, CBT , Code 5602, (Contracts of 5,000 bushels) (i)

Reporting Firms (i) Non-Reportable Positions (i)
Non-Commercial (i)
Commercial (i) Total Reportable (i)
 
Commitments (i) Open (i) Interest Commitments
Long (i) Short (i) Spreads (i) Long Short Long Short Long Short
284,051 73,590 133,074 441,910 582,604 859,035 789,268 906,217 47,182 116,949
 
Changes from 27 Mar 2018 (i) Change in (i) Open Interest Changes from
Long Short Spreads Long Short Long Short Long Short
11,029 -6,632 8,355 11,583 29,783 30,967 31,506 33,423 2,456 1,917
 
Percent of Open Interest for Each Category of Trader (i)
Long Short Spreads Long Short Long Short   Long Short
31.3% 8.1% 14.7% 48.8% 64.3% 94.8% 87.1%   5.2% 12.9%
 
Number of Traders in Each Category (i) Total (i) Traders  
Long Short Spreads Long Short Long Short    
202 118 187 180 265 467 517 664    
 
Long/Short Commitments Ratios (i)   Long/Short Ratio
Ratio   Ratio Ratio   Ratio
3.9:1   1:1.3 1.1:1   1:2.5
 
Net Commitment Change (i)  
17,661  

Also see: