GBP/EUR Spread Betting
Where Can I Spread Bet on GBP/EUR? |
At the moment, you can speculate commission free on GBP/EUR, and an array of similar spread trading markets, via companies like:
Advert:
GBP/EUR Spread Betting, sponsored by FinancialSpreads.com.
You can spread bet on GBP/EUR with
Financial Spreads.
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Where Can I Spread Bet on GBP/EUR for Free? |
Trading always has risks, however, if you'd like to try a free Demo Account, which lets you try spread betting, then please see below.
In addition, don't forget that spread betting, in the UK, is tax free*, i.e. there is no capital gains tax, income tax or stamp duty.
If you're looking for a free spread trading platform, note that investors can take a view on GBP/EUR with no brokers' fees or commissions with providers like:
If you want a virtual money Practice Account which lets users get a feel for spread betting, and markets such as GBP/EUR, then you could always take a look at:
All of the above spread betting companies currently provide a free Demo Account that investors can use to analyse charts, apply an array of orders and test trading strategies.
How to Spread Bet on GBP/EUR? |
As with many global financial markets, you can speculate on foreign exchange pairs, such as GBP/EUR, to either rise or fall.
Looking at a spread betting site like Tradefair, we can see they are valuing the GBP/EUR Rolling Daily market at €1.24930 - €1.24960. This means you can spread bet on the GBP/EUR rate:
 Increasing above €1.24960, or
 Decreasing below €1.24930
Whilst spread betting on GBP/EUR you trade in £x per point where a point is €0.00010 of the pairs movement. So, if your stake was £3 per point and GBP/EUR moves 31.0 points then there would be a difference to your bottom line of £93. £3 per point x €0.00310 = £3 per point x 31.0 points = £93.
Rolling Daily Forex Markets
You should note that this is a Rolling Daily Market which means that there is no settlement date for this market. You do not have to close your position, should it still be open at the end of the trading day, it just rolls over to the next day.
Should your FX bet roll over then you are usually charged a small overnight financing fee. To see a fully worked example read Rolling Daily Spread Betting.
GBP/EUR Rolling Daily - FX Spread Betting Example |
Now, if we consider the spread of €1.24930 - €1.24960 and make the assumptions that:
- you have analysed the FX markets, and
- it leads you to feel that the GBP/EUR rate will rise higher than €1.24960
then you could decide that you are going to buy a spread bet at €1.24960 for a stake of £3 per point.
This means that you make a profit of £3 for every point (€0.00010) that the GBP/EUR forex pair increases above €1.24960. Having said that, it also means that you will make a loss of £3 for every point that the GBP/EUR market decreases below €1.24960.
Thinking of this in a slightly different way, should you buy a spread bet then your P&L is worked out by taking the difference between the closing price of the market and the initial price you bought the spread at. You then multiply that price difference by your stake.
As a result, if after a few trading sessions the FX rate rose then you might want to close your spread bet to lock in your profit.
If that happened then the spread, determined by the spread betting company, might change to €1.25272 - €1.25302. To close your position you would sell at €1.25272. Accordingly, with the same £3 stake you would make a profit of:
Profits (or losses) = (Closing Price - Initial Price) x stake
Profits (or losses) = (€1.25272 - €1.24960) x £3 per point stake
Profits (or losses) = €0.00312 x £3 per point stake
Profits (or losses) = 31.2 points x £3 per point stake
Profits (or losses) = £93.60 profit
Speculating on FX doesn't always go to plan. In the above example, you had bet that the currency pair would rise. Naturally, the currency rate could go down.
If the GBP/EUR market began to drop then you might choose to close your position to limit your losses.
If the spread fell to €1.24585 - €1.24615 you would sell back your position at €1.24585. If so, your loss would be calculated as:
Profits (or losses) = (Closing Price - Initial Price) x stake
Profits (or losses) = (€1.24585 - €1.24960) x £3 per point stake
Profits (or losses) = -€0.00375 x £3 per point stake
Profits (or losses) = -37.5 points x £3 per point stake
Profits (or losses) = -£112.50 loss
Note - GBP/EUR Rolling Daily spread taken as of 11-Sep-12.
Where Can I Find Live Spread Betting Prices and Charts for GBP/EUR? |
If you want access to live prices and charts for GBP/EUR, you can use a spread betting account. Users should note that spreads accounts are normally dependent on suitability and status checks.
If your account application is accepted then, after logging on, you will be able to look at the live trading prices/charts. These are usually provided as part of the service, however, you're likely to get the occasional sales email and/or call from your online spread betting firm.
If you do decide to trade then, before you start, you should note that financial spread trading carries a high level of risk and it is possible to incur losses that exceed your initial investment.
Although the specific charting packages normally vary between providers, they often have handy features and tools, including:
- A broad variety of intervals - 2 minutes, 15 minutes, 4 hours and so on
- Different display styles - candlestick and line charts
- Drawing options - Trendlines, Fibonacci Fans, Arcs and Time Zones
- Indicators - MACD, RSI and so on
Charts provided by Tradefair Spreads also have advanced features such as:
- BackTesting and Optimisation tools
- Custom email notifications for when the markets hit a pre-determined level
Example forex market candle chart
The online spread betting brokers in the following list offer their users real time trading charts and prices:
Advert:
GBP/EUR Spread Betting, sponsored by FinancialSpreads.com.
You can spread bet on GBP/EUR with
Financial Spreads.
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Risk Warning: Spread betting and CFD trading carry a high level of risk to your capital and you may lose more than your initial investment. Spread betting and CFD trading may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.
'GBP/EUR Spread Betting' by DB, updated 09-May-13
For related pages also see:
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