Soybean Trading your best online source

 

 

Soybean Trading is wonderful for diversification within the agriculture markets. Soybeans are traded by speculators and producers on the Chicago Board of Trade CBOE.

 

Soybeans are considered and agricultural commodity. The main agriculture or grain commodities are soybeans, wheat and corn.

Soybean Trading Prices

Soybeans trade in 5000 bushel units. A bushel of soybeans weighs approximately 60 pounds. A soybean contract controls 5000 bushels. Soybeans have been trading in a range of $11 - $14 a bushel the past year 2011. With a range of $5 - $14 over the past three years. Every penny the price of soybeans fluctuates corresponds to a $50 move in value. A $1 move in the soybean market would equate to a $5000 move in the futures contract (5000 bushels X $1.00 move = $5000). A $3 move in the soybean market has a value of $15,000!

Soybeans are traded with a futures contract to speculate on whether the price is to go higher or lower. If you think soybeans will increase in value you would go long a futures contract. This would be the case if you predicted that the amount of soybean production was going to be lower due to lower crop yields from a drought or fires. And if demand for the soybeans is still high then the price of soybeans should appreciate.

 

Soybean Trading Fundamentals

If you think the value (price) of soybeans will go lower then you would go short the soybean futures contract. This would be the case if you expected supply to exceed demand.

One of the ways professional trades will use to determine whether to go long or short the soybean futures is to use a trend following trading strategy. Many traders use TradeThink our proprietary trading algorithm to help show the trend direction of the soybean market.

 

Soybean Trading Methods

Most individual traders will trade soybeans with a single futures contract. If you are a larger trader you could simply trade more contracts or use multiple strategies to leg into multiple soybean contracts. Our Legacy X Pro strategy uses three different time frames to track the soybean market. This way you can be long or short up to three soybean contracts during a nice trend. If you want to trade even more soybean contracts you can do that with some of our other systems.

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If you would like to learn more about soybean trading you can sign up for a trial and you will be able to see soybean charts and price quotes. For information on soybean margins please view our margin section.