Coffee Spread Betting Guide





Also see Live Coffee chart below.



Where Can I Spread Bet on Coffee?

You can spread bet on coffee, as well as numerous other financial markets, with any of these spread trading providers:

Financial Spreads ETX Capital Spreadex IG City Index
Gold Daily Financial Spreads Gold Daily ETX Capital Gold Daily Spreadex Gold Daily IG Gold Daily City Index Gold Daily
Gold Futures Financial Spreads Gold Future ETX Capital Gold Future Spreadex Gold Future IG Gold Future City Index Gold Future
UK Crude Oil Daily (Brent) Financial Spreads UK Oil Daily (Brent) ETX Capital UK Oil Daily (Brent) Spreadex UK Oil Daily (Brent) IG UK Oil Daily (Brent) City Index UK Oil Daily (Brent)
UK Crude Oil Future (Brent) Financial Spreads UK Oil Future (Brent) ETX Capital UK Oil Future (Brent) Spreadex UK Oil Future (Brent) IG UK Oil Future (Brent) City Index UK Oil Future (Brent)
US Crude Oil Daily (WTI) Financial Spreads US Oil Daily (WTI) ETX Capital US Oil Daily (WTI) Spreadex US Oil Daily (WTI) IG US Oil Daily (WTI) City Index US Oil Daily (WTI)
US Crude Oil Future (WTI) Financial Spreads US Oil Future (WTI) ETX Capital US Oil Future (WTI) Spreadex US Oil Future (WTI) IG US Oil Future (WTI) City Index US Oil Future (WTI)
Other Commodities Financial Spreads Other Commodities ETX Capital Other Commodities Spreadex Other Commodities IG Other Commodities City Index Other Commodities
The above spread betting markets may also be available with other companies. Also see spread bets comparison notess.


Live Coffee Chart




Live Coffee Chart




Where Can I Get Live Spread Betting Prices and Charts for Coffee?

The simple chart above offers a handy look at the market.

Still, if you are trading coffee, the companies mentioned above give users access to real-time pricing as well as charts that have more indicators.

Example spread betting chart from Financial Spreads:

Coffee Spread Betting Guide - Example Chart



Coffee Spread Betting Example

Coffee Spread Betting Guide
If you are going to spread bet on a commodity market like coffee then, looking at a trading platform like IG, at the time of writing you would see a quote of $178.80 – $179.15.

Therefore, you could speculate on coffee to move higher than $179.15 or to move lower than $178.80.

When you spread bet, you trade on every unit the market moves up or down; specifically, for the coffee market a unit is $0.01 of the commodity’s price movement.

With this example, let’s say you choose to trade £1 for every cent coffee increases or decreases.


Speculating on the Market to Rise

If you were to go long of coffee at $179.15 and the commodity went up then the price could move to $180.85 – $181.20. If this were the case, you might decide to close your position for a profit by selling at $180.85.

P&L = (settlement price of the market – initial price of the market) x stake per cent
P&L = ($180.85 – $179.15) x £1 per cent stake
P&L = $1.70 x £1 per cent
P&L = £170 profit

Markets do of course fall, if the commodity were to fall down to $177.27 – $177.62, you could choose to close your bet to limit your losses. If that were to happen, you would sell at $177.27.

You would do this with the same £1 per cent stake:

P&L = (settlement price of the market – initial price of the market) x stake per cent
P&L = ($177.27 – $179.15) x £1 per cent stake
P&L = -$1.88 x £1 per cent
P&L = -£188 loss


Speculating on the Market to Fall

A key advantage of spread trading is that you can go short of the markets, i.e. speculate that the markets will go down.

At the start of the example, the price was $178.80 – $179.15.

If you were to sell coffee at $178.80 and the commodity decreased then you might see the price drop to $176.99 – $177.34. If that happened, you could close your bet by buying at $177.34.

P&L = (initial price of the market – settlement price of the market) x stake per cent
P&L = ($178.80 – $177.34) x £1 per cent stake
P&L = $1.46 x £1 per cent
P&L = £146 profit

Markets can also rise, if the commodity were to rise to $180.06 – $180.41, you could close your bet to restrict your losses. Therefore, you’d buy at $180.41.

With the same £1 per cent stake:

P&L = (initial price of the market – settlement price of the market) x stake per cent
P&L = ($178.80 – $180.41) x £1 per cent stake
P&L = -$1.61 x £1 per cent
P&L = -£161 loss


US Coffee (September) spread betting market taken as of 10-Nov-16.

One thing to note is that this is a futures market which has a particular expiry date, i.e. when it will close.



Coffee Demo Accounts

The companies detailed below have practice accounts, you can use these accounts to place spread bets on coffee in a risk-free environment.




User Questions and Answers on Coffee

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