12th Nov 2009 by Gary
As with all commodities, cotton prices and price movement are directly related to supply and demand. To know where supply and demand for cotton is is a must if you want to sucessfully invest in it.
Concerning the practicals, you will need to know what the margin requirements to purchase cotton is so you know how much money you'll need to make the trade. Normally it's around 15 percent of the lot you're buying.
If you prefer to invest without doing it on margin, you could go the ETF route, which usually tracks the movement of cotton prices.
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