Paddy Power’s new financial spread betting venture, paddypowertrader, has seen an increase in clients moving into Forex trading following the recent international equity market shakedown.
“As spread betting fervour takes hold, we can see a trend in retail investors reaching for foreign exchange markets. Therefore many spread bettors have been taking advantage of the current volatility to realise potential gains. Savvy spread bettors are eager to diversify their portfolios and now are moving into other types of financial spread betting markets,” said Davin McAnaney, Commercial Manager of paddypowertrader.
“The spread betting fraternity in the UK and Ireland seems to be progressing into FX markets during this strong period of movement. FX is certainly very attractive for spread bettors at the moment. The rising Euro against Sterling and US Dollar is providing plenty of opportunities for potential gains,” he said.
“During March we have seen incredible drama on the international markets. All time highs in the international FX markets are leading clients to switch to foreign exchange and other products to take advantage of the plummet in value of both US Dollar and Sterling. Already we have seen a number of clients taking profits from the rapidly changing FX markets,” enthused McAnaney.
At the moment the EUR / USD (September) market is $1.5534 - $1.5542 with Paddy Power Trader.
Therefore you can financial spread bet on EUR / USD settling:
Higher than $1.5542, or
Lower than $1.5534
On the expiry date of this EUR / USD (September) market, 12-Sep-08.
For the EUR / USD market, you trade in £X per pip, where a pip is 0.0001 pip of EUR / USD movement. Eg if your stake was £10 per pip and the EUR / USD currency pair moves 0.0008 pips then that would be a £80 difference to your P&L.
Worked EUR / USD Spread Betting Example
So taking the current spread of $1.5534 - $1.5542 let’s that you have done your research and think that the EUR / USD market will finish above $1.5542 on 12-Sep-08.
Therefore you could buy at $1.5542 for a stake of, let’s say, £5 per pip.
If on the closing date the market finishes at $1.5568, ie above the level you bought at ($1.5542) then you’ve made a profit…
Your profit / loss is worked out by taking the difference between the closing price of $1.5568 and the price you bought the market at, $1.5542 and then multiplying that difference by the stake per pip.
P&L = ((1.5568 - 1.5542) / 0.0001) x £5 per pip stake.
= (0.0026 / 0.0001) x £5 per pip stake.
= 26 pips x £5 per pip stake.
= £130 profit.
However if the market didn't move as expected and had EUR / USD currency cross gone against you and settled lower at $1.5521, then you would have made a loss.
Loss = ((1.5521 - 1.5542) / 0.0001) x £5 per pip stake.
= (-0.0021 / 0.0001) x £5 per pip stake.
= 21 pips x £5 per pip stake.
= -£105 loss.
(Note: Forex prices quoted as of 04-Apr-08).
For more information >> Paddy Power Trader.
Risk Warning: Spread betting carries a high level of risk to your capital. You may lose more than your initial investment. It 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.
'paddypowertrader Forex Volatility' by paddypowertrader, updated 08-May-08
For related pages also see:
Paddy Power Trader, updated 18-Mar-10
Paddy Power Trader account information and website review....read article. Spread Betting Ireland, updated 18-Mar-10
Ireland's biggest bookmaker, Paddy Power has thrown its hat into the Financial Spread Betting ring and they've given us paddypowertrader....read article. Paddy Power Trader Markets, updated 18-Mar-10
Paddy Power Markets. Plus Account Application and trading information....read article. Paddy Power Trader Prices, updated 18-Mar-10
Paddy Power Trader Prices: A range of sample paddypowertrader Spreads / Prices from Gold to Crude Oil to the FTSE and GBP / USD...read article. New Paddypowertrader Platform, updated 12-Oct-09
The latest paddypowertrader platform offers unparalleled reliability, faster execution and smoother transactions. All of these improvements will...read article. Paddypowertrader Competition Encourages Spread Betting, updated 22-Sep-09
Spread bettors have been diving into a fantasy spread betting game, in which traders pit their skills against each other to win...read article. Investors Turn to Gold Spread Betting Markets, updated 22-Sep-09
Gold prices hit a new 18-month high of $1,020.30 an ounce on Wednesday, extending earlier gains, as the Dollar languished against the Euro. With gold prices heading upwards, interest in markets has been...read article. US Indices and Equities Attract Spread Bettors, updated 31-Jul-09
Since early 2007 analysts at Wall St firms have consistently lowered US Profit estimates as bank losses tied to sub prime loans led to a lack of economic confidence. Wall Street has soared the past two weeks, lifted by earnings surprises. The Dow, S+P 500 and NASDAQ all have risen to
...read article. Trading Edge - Technical Analysis Tool, updated 07-Jul-09
Paddypowertrader have launched a new trading tool to promote better technical analysis. Trading Edge is free and trawls through thousands of markets and their prices to find some of the best signals out there. This saves investors...read article. Crude Oil Price Trading on the Increase, updated 14-Jun-09
Spread betting firm sees major client movements into crude oil and indices as the global recovery...read article. Crude Oil Fluctuations Create Trading Opportunities, updated 22-May-09
International oil prices have been fluctuating for the past week as worries over oil supply hit the headlines. Attacks on oil refineries by...read article. Markets Ride Swine Flu Roller Coaster, updated 28-Apr-09
The threat of a global pandemic of swine flu has set markets around the world tumbling as finance experts await news of the spread...read article. FTSE 100 Trading Offer, updated 20-Feb-09
6 Nations, 6 Trades, 20 tickets - all clients who trade the FTSE 100 market 6 Times before the deadlines could win tickets to the matches. Focus matches include...read article. Indices Rally Drives Spread Betting Accounts, updated 02-Apr-09
The FTSE remains the most popular trade by far among the firm's clientele but also high on the list for astute spread bettors are...read article. Barack Obama Increases US Equities Trading, updated 21-Jan-09
There is the fact that whilst Democratic presidents have traditionally been good for both the American and the global economies, some democrats...read article. Worst Irish Shares 2008, updated 11-Jan-09
Spread bettors have been diving into Irish shares since the beginning of 2008. Unfortunately the ISEQ Index has lost 66.31% of its value...read article. Low Crude Oil Prices Providing Opportunities, updated 20-Dec-08
Oil has been yo-yoing in price for the last couple of days, after an OPEC decision to cut production on Wednesday, presenting spread bettors with...read article. 24 Hour Spread Betting Hits Ireland, updated 09-Dec-08
Paddypowertrader has brought 24 hour spread trading to Ireland. The Irish-based company has developed trading for US and Asian indices on a 24 hour basis...read article. Is the Celtic Tiger Extinct?, updated 25-Feb-09
Irish spread betting firm sees trades in equities increase as ISEQ drops below 2,000 to pre-Celtic Tiger levels...read article. Traders Sell Crude Oil, updated 19-Nov-08
Major client movement into crude oil as prices reach their lowest point since January 2007...read article. Wall Street Index Drops to 10000, updated 07-Oct-08
Spread bettors have been delving into the Wall Street (Dow Jones) Index as it dropped below the psychological barrier of 10,000 points at 3pm on Monday. Shortly after the markets opened in the US the...read article. Fashionable Gold Traders, updated 26-Sep-08
Most investors may not turn up to work sporting a lot of bling however it looks like gold is indeed back in fashion. Gold trades are up a whopping 266% in the last...read article. Storm Clouds, Spread Betting and Banking Equities, updated 18-Sep-08
An interesting report from paddypowertrader has come in. Despite spread betting having a reputation for catching investors out in extremely volatile markets the Irish firm has reported a 110%...read article. paddypowertrader offer, updated 08-Oct-07
paddypowertrader offer...read article. paddypowertrader, updated 08-May-08
We try not to add too many spread betting press releases but you might just find the following article / research interesting....read article. Crude Oil Trading Opportunities, updated 22-Aug-08
Crude Oil has been yo-yoing in for the last couple of days presenting spread bettors with plenty of opportunities according to...read article. Irish Investors Pile into Crude Oil, updated 20-Jun-08
Crude prices have fluctuated widely since they surged nearly $11 in a single session to a trading record above $139.9 in early June. The cost of crude has been a hot topic on the agenda internationally with transport strikes occurring across Europe. Some investors believe prices...read article. Spread Betting on Fannie May, updated 10-Sep-08
News of the US government decision to take over mortgage giants Fannie Mae and Freddie Mac has had an early effect on the volume of trades by spread bettors at...read article. Spread Betting on Irish Equities, updated 27-Aug-08
Ryanair is currently making up 7% of the total revenues traded on equities with paddypowertrader which Analysts put down to ongoing uncertainty in the...read article. paddypowertrader Crude Oil Seminar, updated 04-Jul-08
paddypowertrader is holding a free seminar: 'Oil - holding the world to ransom?' on July 19th at the Radisson SAS St Helens in Stillorgan, Dublin 4. The key topic will be the role of oil on the world markets and its effect on the global economy. The event is designed to...read article. Banking Shares with Paddy Power Trader, updated 08-May-08
We have seen a large increase in bets on financial equities. At the top of the list are Barclays, Alliance & Leicester, RBS and...read article. paddypowertrader Forex Volatility, updated 08-May-08
During March we have seen incredible drama on the international markets. All time highs in the international FX markets are leading clients to switch to...read article. Spread Trading Irish Shares, updated 18-Apr-08
Earlier this week clients were buying US tech shares, pretty flat on US blue chip equities and selling the FTSE. However also looking popular are Irish banking stocks such as AIB, Bank of Ireland and Anglo...read article. Irish Traders Focus on Commodities Spread Betting, updated 02-May-08
We can see many spread bettors moving into commodities in order to take advantage of the bull market in that area at the moment. Financial spread betting is all about developing understanding and using it to the advantage of your trading. paddypowertrader account holders have also delved into markets such as soya-bean...read article. Paddy Power Offer, updated 08-May-08
We are offering the ultimate Paddy's weekend for new paddy power trader account holders to win an all expenses paid VIP trip for 2 to London on March 14th to experience the most exciting rugby match of the...read article. Banking Stocks Spreads with paddypowertrader, updated 29-May-08
As the global credit crunch continues, many banks are announcing discounted rights issues. The mixed forecasts in the banking sector have highlighted banking equities, particularly Irish banking equities, as a growth area for...read article. Paddy Power Trading Equities, updated 19-May-08
Paddypowertrader has been tracking the movements of its client base over the past week to reveal startling retail investment trends. Paddypowertrader has seen indices such as FTSE and Dow Jones jostle for position to become...read article. The Dumbest, Silliest and Funniest Spread Trade, updated 08-May-08
paddypowertrader recently launched competition for clients. It was a pretty straightforward competition. Simply tell them your dumbest, silliest and funniest trade ever. And the winner is...read article. Paddy Power Spread Betting, updated 08-May-08
Volatile markets have improved the trading performance over at paddypowertrader.com. Recent international market turmoil has seen in an emergency Federal Reserve rate cut in the US and a Rogue Trader lose €4.9bn (£3.7bn, $7.1bn) for Societe Generale in France....read article. paddy power trader - Short Trading, updated 08-May-08
Whether the new paddy power trader advert appeals to traders and private investors remains to be seen. Either way it looks like paddy power are back to their best at putting out adverts that tread a fine line....read article. Ireland Spread Betting, updated 23-Nov-08
Spread betting has become increasingly popular in Ireland due to the opportunity it provides to make good short term profits. In fact, the Ireland spread betting phenomenon has increased so much in popularity that the traditional stock market has...read article.
Q) Average Trading Results?
A) Get free spread betting tips, offers, price updates, important news and more! All Free - Click here!
Risk Warning: Spread betting carries a high level of risk to your capital and you may lose more than your initial investment. It 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.
* Tax law is subject to change or may differ if you pay tax in a jurisdiction other than the UK.
