EUR/JPY Spread Betting

The CleanFinancial guide to EUR/JPY spread betting.

• Where Can I Spread Bet on EUR/JPY?
• Live EUR/JPY Charts
• Live EUR/JPY Prices
• EUR/JPY Trading News and Analysis
• Where Can I Trade EUR/JPY for Free?
• Where Can I Practice Trading EUR/JPY?
• How to Spread Bet on EUR/JPY?
• Forex Spread Betting Guide

Live EUR/JPY Chart & Prices

The following CFD chart will provide you with a nice guide to the EUR/JPY rate.


The above chart is from Plus 500 and is normally based on the near-term EUR/JPY futures contract (not the daily market).

If you would like to study live spread trading prices and charts for EUR/JPY, you will probably need a spread trading account.

You can also use a spreads account to trade shorter term daily prices. Please note that such accounts are normally dependent on credit and status checks.

Should your new account be approved then, once logged in, you will be able to analyse the real time trading charts/prices. On most platforms, these are free, however, the catch is that you will probably get the occasional letter or sales call from your spread betting firm.

Of course, if you want to trade then you should remember that contracts for difference and financial spread trading involve a high degree of risk and it’s possible to incur losses that exceed your initial investment.

Where Can I Spread Bet on EUR/JPY?

You are currently able to spread bet on EUR/JPY by trading with any of the following firms:

• City Index
• Financial Spreads
• IG
• InterTrader
• Spreadex

EUR/JPY Market Analysis and Trading News

» More forex trading views and analysis.

Technical Charting Packages for EUR/JPY

Although charts normally differ across the various providers, the charts often come with user friendly features that include:

• Many different time periods, for example, 2 minutes, 15 minutes, 4 hours etc
• A variety of displays, for example, bar and candlestick charts
• Drawing features and options, for example, trendlines, Fibonacci time zones, fans and arcs
• Indicators and chart overlays, for example, Bollinger Bands, RSI, Average Directional Index etc

The charts on Inter Trader also come with advanced features such as:

• BackTesting
• Custom email notifications for when a market reaches a given level
  
  

Sample FinancialSpreads.com forex rate candlestick chart



The spread trading companies listed below provide clients with real time prices and charts:

• City Index (read review)
• ETX Capital (read review)
• Financial Spreads (read review)
• Finspreads (read review)
• IG (read review)
• Inter Trader (read review)
• Spreadex (read review)

Where Can I Trade EUR/JPY for Free?

Trading is not without risk, but if you want to open an entirely free Practice Account, which lets you trial spread betting, please see below.

When thinking about which investment option might work for you, also remember that in the UK, financial spread betting is free of capital gains tax, stamp duty and income tax*.

If you want to try a free trading platform then you should keep in mind that investors can take a view on EUR/JPY with no commissions or brokers’ fees with providers like:

• City Index
• Financial Spreads
• IG Index
• Inter Trader
• Spreadex

Free Demo Account

If you want a (free) virtual money Demo Account / Test Account that lets users try out financial spread betting, including markets like EUR/GBP, the DAX 30, crude oil and EUR/JPY, then take a look at:

• Financial Spreads
• Inter Trader

Each of the above currently offer a free Test Account that allows investors to test new trading ideas, access professional level charts and gain experience with a host of trading orders, e.g. guaranteed stop losses and stop losses.

How to Spread Bet on EUR/JPY?

As with a wide variety of markets, you are able to place a spread bet on forex pairs, such as EUR/JPY, to either rise or fall.

Looking at a financial spread betting site like FinancialSpreads.com, we can see they have priced the EUR/JPY Rolling Daily market at ¥100.065 – ¥100.081. This means an investor can spread trade on the EUR/JPY FX rate:

  Going higher than ¥100.081, or
  Going lower than ¥100.065

When placing a spread bet on EUR/JPY you trade in £x per point where a point is ¥0.010 of the pairs movement. Therefore, if you risked £5 per point and EUR/JPY moves 23.0 points then that would make a difference to your profits (or losses) of £115. £5 per point x ¥0.230 = £5 per point x 23.0 points = £115.

Rolling Daily Foreign Exchange Markets

You should note that this is a ‘Rolling Daily Market’, therefore unlike a normal futures market, there is no settlement date. If your trade is still open at the end of the trading day, it just rolls over to the next day.

If a forex position is rolled over then you will be charged a small overnight financing fee. For a more detailed guide to Rolling Daily Markets, including a fully worked example, please read our feature Rolling Daily Spread Betting.

EUR/JPY Trading Example 1

Now, if you think about the above spread of ¥100.065 – ¥100.081 and assume that:

• you have done your analysis of the currency markets, and
• you feel that the EUR/JPY rate will move above ¥100.081

then you could buy at ¥100.081 for a stake of £2 per point.

With such a bet you make a profit of £2 for every point (¥0.010) that the EUR/JPY rate moves higher than ¥100.081. On the other hand, such a bet also means you will make a loss of £2 for every point that the EUR/JPY market falls lower than ¥100.081.

Put another way, should you buy a spread bet then your P&L is found by taking the difference between the closing price of the market and the price you bought the market at. You then multiply that price difference by the stake.

If after a few days the FX pair started to increase then you might want to close your spread bet so that you can secure your profit. If that happened then the spread, set by the spread trading company, might change to ¥100.631 – ¥100.647. In order to close your spread bet you would sell at ¥100.631. Therefore, with the same £2 stake your profit would come to:

Profits (or losses) = (Settlement Price – Opening Price) x stake
Profits (or losses) = (¥100.631 – ¥100.081) x £2 per point stake
Profits (or losses) = ¥0.550 x £2 per point stake
Profits (or losses) = 55.0 points x £2 per point stake
Profits (or losses) = £110.00 profit

Trading currencies is not simple. In this case, you had bet that the forex pair would rise. Nevertheless, it could decrease.

If the EUR/JPY market had started to drop then you might decide to settle/close your position in order to limit your losses.

Should the market fall back to ¥99.616 – ¥99.632 then this means you would sell back your position at ¥99.616. As a result, your loss would be:

Profits (or losses) = (Settlement Price – Opening Price) x stake
Profits (or losses) = (¥99.616 – ¥100.081) x £2 per point stake
Profits (or losses) = -¥0.465 x £2 per point stake
Profits (or losses) = -46.5 points x £2 per point stake
Profits (or losses) = -£93.00 loss

Note: EUR/JPY Rolling Daily spread taken as of 11-Sep-12.

How to Spread Bet on Euro-Yen – Example 2

Looking at a financial spread betting site like FinancialSpreads.com, we can see they are showing the Euro-Yen Rolling Daily market at ¥102.721 – ¥102.737. As a result, an investor can spread bet on the Euro-Yen rate:

  Going above ¥102.737, or
  Going below ¥102.721

Whilst financial spread trading on Euro-Yen you trade in £x per point where a point is ¥0.010 of the pairs movement. Therefore, if your stake was £5 per point and Euro-Yen moves 37.0 points then that would be a difference to your profits (or losses) of £185. £5 per point x ¥0.370 = £5 per point x 37.0 points = £185.

Now, if you think about the above spread of ¥102.721 – ¥102.737 and make the assumptions that:

• You have completed your analysis, and
• It leads you to think that the Euro-Yen market will go higher than ¥102.737

Then you may decide to buy a spread bet at ¥102.737 for a stake of £3 per point.

This means that you make a profit of £3 for every point (¥0.010) that the Euro-Yen pair moves above ¥102.737. On the other hand, you will lose £3 for every point that the Euro-Yen market moves below ¥102.737.

Thinking of this in a slightly different way, if you were to buy a spread bet then your profit/loss is calculated by taking the difference between the closing price of the market and the initial price you bought the market at. You then multiply that difference in price by your stake.

If after a few sessions the foreign exchange rate moved higher then you might want to close your position to secure your profit.

Therefore, if the market moved up then the spread, determined by the spread betting company, could be adjusted to ¥103.251 – ¥103.267. You would close your position by selling at ¥103.251. Therefore, with the same £3 stake:

Profit = (Closing Price – Initial Price) x stake
Profit = (¥103.251 – ¥102.737) x £3 per point stake
Profit = ¥0.514 x £3 per point stake
Profit = 51.4 points x £3 per point stake
Profit = £154.20 profit

Speculating on forex, whether by spread betting or otherwise, can work against you. In this example, you had bet that the currency pair would increase. However, the forex rate could go down.

If the Euro-Yen rate dropped then you might decide to settle/close your position to limit your losses.

Should the market fall back to ¥102.275 – ¥102.291 you would settle your spread bet by selling at ¥102.275. This would result in a loss of:

Loss = (Closing Price – Initial Price) x stake
Loss = (¥102.275 – ¥102.737) x £3 per point stake
Loss = -¥0.462 x £3 per point stake
Loss = -46.2 points x £3 per point stake
Loss = -£138.60 loss

Note – Euro-Yen Rolling Daily currency market taken as of 18-Sep-12.