There are many advantages in the SPOT MARKET to satisfy your requirements and providing you with a new business opportunity.You can hedge or use the SPOT MARKET contract to reduce the risk you have to face in the course of doing related business.
You can enjoy the efficient leverage system.Only a minimum security deposit is needed,which is just a fraction of the various contract value of the following 8 counters traded - such as Coffee,Silver,Soybean,Porkbellies,Corn,Wheat,Cotton and Copper.
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COMMODITY - Coffee |
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CHARACTERISTICS |
| 2 VARIETIES MAINLY |
Arabica and Robusta.
Arabica is of higher quality,have a better aroma and milder.It is grown mostly in the cooler mountainous regions of South America.
Robusta is planted in the hotter lower equatorial areas of Africa and Asia.It is more desease-resistant and tolerant of drought and frost.
The coffee year is from 1st October to 30th September. |
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| PRODUCTION |
Since 1960s,world exportable production ranged from 40 million bags to 90 million bags per year (60 kg or 132 lb per bag).World supply depends on relatively few countries.The largest producer is Brazil,followed by Columbia.Together,they account for close to 50 % of world export. |
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| CONSUMPTION |
World demand is around 60 million bags annually.Major consumers are the industrialised countries of USA,Western Europe and Canada.US consumption is on the decline but this is offset by the rising demand of Western Europe.
In recent years consumption has been stimulated by improved availability such as coffee vending machines and the promotion of instant coffee. |
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| PRICE FACTORS |
The weather in Brazil is a major factor as Brazil is the world's largest producer of coffee.A severe frost (July 1975) caused extensive damage to the crop and brought prices to record highs in 1975 and 1976.
Plant desease affects most coffee-producing areas.Leaf rust is one of the common diseases.
Latin American coffee is usually free of damaging insects and pests,but African coffee is affected by a large number of pests.
The International Coffee Organisation's global export quota syatem has been effective in keeping prices within a target range.Coffee prices move inversely to the strength of currency in which it is dominated. |
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| CONTRACT SIZE PER UNIT/LOT |
5 tonnes (55,000 lbs)
London Futures & Option Exchange
New York Coffee,Sugar & Cocoa Exchange (NYCSCE) |
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NORBITON INTERNATIONAL LIMITED |
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How To Open An Account |
| 1. |
Sign a Contract Agreement |
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| 2. |
Prepare a Bank Draft in RM (Ringgit Malaysia)- beneficiary under Norbiton International Limited.
OR
Bank-In slip
OR
Company/Personal cheque |
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| 3. |
Photocopy of Investor's NRIC (front & back) |
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| 4. |
Mailing Address & Phone number(s) |
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| 5. |
Photocopy of Broker's NRIC (front & back) |
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| 6. |
Proceed to Manager In Charge. |
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POTENTIAL PROFIT FOR INVESTOR |
| Counter |
Coffee |
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| Contract Size |
55,000 lbs |
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| Security Deposit Per Lot |
USD 1,000-00 (Day Trade)
USD 2,000-00 (Overnight Trade) |
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| Brokerage Fee |
USD 140-00 |
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| Value Of Point |
USD 550-00 |
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| Value Of One Movement |
USD 27-50 |
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| Minimum Fluctuation |
USD 0.05 |
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| Trading Hours (Malaysian Time) |
9.15 pm to 1.35 am ("summer")
10.15 pm to 2.35 am ("winter") |
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| Investment Proposed Trading Plan |
USD 10,00-00 (RM 38,300-00).Use 20 - 50 % of capital in one trade.Sustaining power - 9 points. |
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| Average Market Movement |
3 - 12 points (low - high) |
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| Net Profit Per Transaction |
= (nos. of lots x value of points x contract size) - facility fee |
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| Trading Strategies |
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1) If market is expected to go up,we buy first and sell later |
| Example - Buy open 1 lot at |
130.00 points |
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| Sell close 1 lot at |
132.00 points |
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| Net Profit Per Transaction |
= (1 lot x 2 points x USD 550-00) - USD 140-00
=USD 960-00 ( x RM 3-83 )
= RM 3676-80 (per day per lot) |
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2) If market is expected to go down,we sell first and buy later.(Sell at high price and buy back at lower price) |
| Example - Sell open 1 lot at |
129.00 points |
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| Buy Close 1 Lot at |
127.00 points |
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| Net Profit Per Transaction |
= (1 lot x 2 points x USD 550-00) - USD 140-00
=USD 960-00 ( x RM 3.83)
=RM 3676-80 (per day per lot) |
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