Many Central Highlands – based coffee traders have already gone to bankruptcies when taking risk to join online trading through online coffee trading floors.
This method is done through two main exchanges floors of New York and London. It is not included trans-national companies those who always offer online trading via their virtual trading floors.
It is not difficult to trade; you just deposit 10% in their bank accounts, register an account and start trading. Many private enterprises those who do not have sound experience of global coffee market are eager to start trading and immediately got lost. Some investors those who start with a small quantity, initially they earn profit and put more money in; however, eventually the more they trade, the more they lost.
Many companies get lost because they are unable to predict world’s coffee markets, lack trading experiences, predict wrong market trends, unable to analyze factors of politics and economy, etc. that affect to coffee prices.
A coffee trader which is very well-known in Pleiku has already lost more than 40.0 billion dongs in trading both real and virtual coffees. Not long ago, a private enterprise in Gia Lai also went to bankruptcy when they lost up to 17.0 billion dongs for trading coffee online. Daklak’s statistics show that 43 coffee businesses in the province have already gone to bankruptcies with 300 billion dongs lost in total in which there has a reason from online coffee trading.
- in Pleiku City, who has lost more than 10 billion dongs via online coffee trading platforms says: “With 10% of deposit, each 1 lot (equivalent to 10 tons, 120 dollars/ ton) stands for a deposit of USD$1,200 while 400 million dongs are required in real coffee commoditiestrading. What I was shocked is that “big cat” speculators know how to control the markets at their will. After you had bought at a high price, and prices come down to the call margin of 10%, the account will be stopped automatically if you put no more money in. The investor will lose all of initial deposit. Due to lack of knowledge, I’ve been lost more than 10 billion dongs for a very short time of 2008.” T., another investor, reminds: “In 2008, I have lost 5 billion dongs in just a few sessions to the extent that I have to sell out 40 lots to cut losses. Next to June 2008, more than ten billion dongs are gone because the more you trade the more you lost.”
Nguyen Nam Hai, standing vice chairman of Vietnam’s Association of Coffee and Cocoa, warns: “Investors those who join online coffee trading should be very careful because that may be a two – edged knife which cuts your hands at any time.”