Wikitoro author Mike Druttman Written by Mike Druttman
Wikitoro fact checker Nick Zelver Fact checked by Nick Zelver
Updated Nov, 2024

Setting the Scene

Coffee, a globally treasured commodity, is not just a staple in our daily lives but also a significant player in the world market. Over 2.25 billion cups are savored daily, making its trade pivotal in the global economy. The pricing of coffee is intriguing, subject to various influencing factors, and hence, a hotspot for market speculation.

The world primarily trades in two types of coffee: Arabica and Robusta. Arabica, known for its superior flavor and quality, commands a higher price, distinguishing it as the more premium choice.

For those interested in market dynamics, trading Coffee Contracts for Difference (CFDs) offers an exciting opportunity to engage with this vibrant market. Through platforms like eToro, even agricultural commodities like coffee become accessible for trading. To navigate this intriguing world, my comprehensive guide provides detailed insights and personal experiences, ensuring a well-rounded understanding for anyone keen on investing in this fascinating commodity.

 

Trading Coffee Arabica via CFDs

When trading Coffee Arabica on this eToro platform, it's crucial to understand that you're engaging in Contracts for Difference (CFDs), not purchasing or storing physical coffee beans. The allure of CFD trading lies in its flexibility – it allows speculation on market movements without the need for physical ownership, an aspect I find particularly advantageous. Crypto CFDs/ Leverage trading is restricted for users under FCA.  

 

Why eToro is My Preferred Platform for Coffee Trading

My experience trading this commodity on this broker has revealed several key benefits:

  • User-Friendly Interface: Whether using the app or the web version, it offers an intuitive, easy-to-navigate platform.
  • Flexible Trading Schedule: While commodity markets aren't open round the clock, this broker enables me to place orders, which are then executed as soon as the market opens.
  • Leverage Trading: It allows leveraging, which means I can engage in larger trades with a smaller capital commitment. This is a powerful tool for maximizing potential returns, but make sure to be aware of the risks as well.
  • Minimum Investment: The platform requires a minimum investment of $1,000 for eToro commodities. This gives me the flexibility to either invest the exact amount or use leverage for increased market exposure.
  • Risk Management Tools: Features like 'take profit' and 'stop loss' are invaluable for safeguarding investments, providing peace of mind and control over my trades.

 

Exploring the Coffee Arabica Future Page

Navigating to the Coffee Arabica Future asset page on eToro, you're greeted by the Overview section, a hub of essential features:

  1. Graph: This displays the asset's performance over time, offering a visual representation of market trends.
  2. About: Provides a brief introduction to Coffee Arabica as a commodity.
  3. Latest News: Curated news relevant to this particular coffee, sourced from CityFALCON, keeping you updated with the latest market developments.
  4. People Also Bought: Shows other popular commodities that traders are investing in, offering insights into current market trends. I suggest that you check this out if you'd like to explore other interesting assets.
  5. Copy Coffee Arabica Future Investors: Lists top-performing traders in this commodity. A simple click on the "Copy" button next to a trader's profile lets you replicate their trading strategies in your portfolio.
  6. Discussions: A forum for traders to share thoughts, strategies, and insights about this commodity. You can engage with posts, filter conversations, and share insights on your feed.
eToro Coffee Arabica trading page
eToro Coffee Arabica trading page

 

Integrated Tools for Enhanced Trading

I personally liked these integrated tools that are capable of enhancing my commodity trading experience:

  • Chart: This one has a live chart for the underlying asset and it's customizable to show gaps ranging from 1 minute to 1 week. This has aided me in making a detailed market analysis.
  • News: Alongside the latest updates, the platform also provides a sentiment analysis powered by CityFALCON. This feature not only indicates the mood of the news (positive, negative, or neutral) but also shows Sentiment Trends. This section quantifies market sentiment towards Coffee Arabica, displaying a 30-day average sentiment, daily sentiments, and top stories for each day.

 

Process of Trading Coffee Arabica

So how do I trade Coffee Arabica on eToro? Here are the steps that I did to invest on this asset:

  1. Search for the Asset: Locate Coffee Arabica in the platform's search function.
  2. Choose Your Position: Decide whether to "BUY" (go long) or "SELL" (go short) based on your market analysis.
  3. Set Investment Amount: Input the amount you wish to invest in this trade.
  4. Configure Trading Preferences: Adjust settings like leverage, stop loss, and take profit according to your trading strategy.
  5. Execute the Trade: Once satisfied with your choices, confirm and execute the trade.
Buying Coffee Arabica on eToro
Buying Coffee Arabica on eToro

 

The Bottom Line

That concludes our guide to trading this interesting commodity on eToro. Whether you're using the web platform or the mobile app, it's crucial to be fully aware of the risks involved in coffee trading. Factors such as market volatility, global demand, and geopolitical events can significantly impact your investments.

☕ Remember to apply the tips and insights shared here wisely as you embark on your coffee trading journey. Staying informed and strategic will help you navigate the complexities of this exciting market.

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.

Copy Trading does not amount to investment advice.  The value of your investments may go up or down.  Your capital is at risk.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which hasbeen prepared by our partner utilizing publicly available non-entity specific information about eToro.

 

Wikitoro author Mike Druttman About Mike Druttman

Mike Druttman, Head of Content at Wikitoro.org, has decades of expertise in marketing communications and business matching. Educated at the CAM Foundation and the Chartered Institute of Marketing, Mike has collaborated with businesses from the UK to Japan. He founded KEYZUNA, bridging Japanese businesses with global innovations. With a diverse background spanning high-tech to hospitality, Mike's articles at Wikitoro reflect his vast knowledge and unique perspective.

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