Cotton Futures and how to trade themCotton Futures are an ideal to way to invest in cotton with the use of leverage.Cotton is a plant that is a member of the Mallow Family. Cotton is used to make a number of textile products. Amongst these are bath towels, clothing items, bedding. Some textiles are made solely from cotton whilst others include synthetic fibers such as polyester. Cotton also many many other uses including coffee filters, tents, gun powder and cotton paper.
Cotton Chart Cotton Contracts are traded on the NYBOT exchange. One contract represents 50,000 lbs of cotton. Prices are quoted in cents per pound. The nominal value of a contract in US Dollars will be the price multiplied by 50,000 divided by 100.
Trading cotton is a potentially lucrative instrument to trade. However, as demonstrated by the cotton chart above, prices can move quickly so one must be prepared for volatile price action.
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