Forex Spread Trading on Pound / Yen
|
|
|
Quick answers to the most common Pound/Yen Trading questions:
Q) Where can I Spread Bet on Pound/Yen?
Q) Where can I Trade for Free on Pound/Yen?
Q) How to Spread Bet on Pound/Yen?
Q) Where can I find Free Live Prices on Pound/Yen?
Q) Where can I find Free Pound/Yen Charts?
Q) Where can I find free Forex Trading News?
Q) Where can I find Narrow Forex Spreads?
The Yen has profited from the current state of the markets. Investors continue to reduce their risk and have been pulling out of the ‘Carry Trade’ market. T
Forex Carry Trade:
This is where investors borrow low-yield currencies and invests the funds in high-yield currencies. In the normal course of affairs investors sell the currency they have borrowed and change it into other currencies. That will of course weaken the target currency (the one being borrowed).
If the Carry Trade is reduced then investors could expect the target currency, in this case the Yen, to strengthen. And that has been seen in recent days.
Example: an investor borrows ¥5,000. They convert the Yen into Sterling and buy bonds with the funds. If the bonds pay 4.5% and the Japanese interest rate is 0.5% then the investor should profit at 4.0% (ie 4.5% - 0.5%).
That should work if the exchange rate does not alter. This sort of leverage can be very profitable and the margins have been large enough to cause a large Retail business on top of the expected Fund business. If the investor uses a leverage of 10:1 then they can stand to make a profit of 40% (4.0% x 10).
The problems start if Sterling falls against the Yen. If that happens there is a risk of losing. Again because of the leverage, the losses can multiply rapidly.
With the Carry Trade becoming more risky and the Yen strengthening against the Pound that makes the Carry Trade even more risky. That further reduces the Carry Trade and further strengthens the Yen. And so on.
So how can you profit from this? One option is to spread trade on the Forex Pound / Yen markets, ie selling the Pound against the Yen.
eg
spread trading on the Sterling/Yen
(Sept) price going below 224.86 by 14 September.
For the £/¥ market, you trade in £X per point, where a point is 0.01 of Sterling/Yen movement. If your stake is £20 per point and the Sterling/Yen moves 0.04 then that would be an £80 difference to your profits.
Financial Spreads >>
"With FinancialSpreads.com you get all the normal
advantages of Spread Betting plus..." >> read
Financial Spreads review.
|
Forex example: Selling the Pound v the Yen
Let's say you see the live price on a spread betting website like FinancialSpreads.com and it displays a spread of 224.74 - 224.86 and you have done your research and think that the Sterling/Yen (Sept) price will should go down below the 224.74 mark.
Therefore you sell at 224.74 for a stake of £10 per point.
So if, let's say that by the market closing date of 14 September the £/¥ (Sept) market closes at 224.62.
Your profit and loss is calculated by taking the difference between the value you sold the market at, ie 224.74 and the settlement value of 224.62 and then multiplying that by the stake per point of movement.
Profit / Loss = ((224.74 - 224.62) / 0.01) x £10 per point stake.
= (0.12 / 0.01) x £10 per point stake.
= £120 profit.
But if the market didn't move as predicted and had the Sterling/Yen (Sept) price gone up and closed at 224.88, then you would have made a loss.
Profit / Loss = ((224.74 - 224.88) / 0.01) x £10 per point stake.
= (-0.14 / 0.01) x £10 per point stake.
= -£140 loss.
Forex Daily Rolling Market for Sterling / Yen
In the above you can see how the Forex Daily Rolling Market for Sterling / Yen has climbed since the Near Year and seen a large drop since 17 July.
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.
'Forex Spread Trading on Pound / Yen' by DB, updated 11-Dec-08
For related pages also see:
FX Spread Betting, updated 26-Jan-12
FX Spread Betting: the complete FX spread betting guide with an FX price comparison, where to get free FX spread betting prices, charts and software. Plus daily FX news and...read article: FX Spread Betting.
Euro - Dollar Spread Betting, updated 16-Jan-12
The complete Euro - Dollar forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Euro - Dollar currency market, how to spread bet on FX and...read article: Euro - Dollar Spread Betting.
Dollar - Yen Spread Betting, updated 16-Jan-12
The complete Dollar - Yen forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Dollar - Yen currency market, how to spread bet on FX and...read article: Dollar - Yen Spread Betting.
Sterling - Dollar Spread Betting, updated 16-Jan-12
The complete Sterling - Dollar forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Sterling - Dollar currency market, how to spread bet on FX and...read article: Sterling - Dollar Spread Betting.
Euro - Sterling Spread Betting, updated 16-Jan-12
The complete Euro - Sterling forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Euro - Sterling currency market, how to spread bet on FX and...read article: Euro - Sterling Spread Betting.
Dollar - Swiss Franc Spread Betting, updated 16-Jan-12
The complete Dollar - Swiss Franc forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Dollar - Swiss Franc currency market, how to spread bet on FX and...read article: Dollar - Swiss Franc Spread Betting.
Sterling - Euro Spread Betting, updated 16-Jan-12
The complete Sterling - Euro forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Sterling - Euro currency market, how to spread bet on FX and...read article: Sterling - Euro Spread Betting.
US Dollar - Canadian Dollar Spread Betting, updated 16-Jan-12
The complete US Dollar - Canadian Dollar forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the US Dollar - Canadian Dollar currency market, how to spread bet on FX and...read article: US Dollar - Canadian Dollar Spread Betting.
Australian Dollar - US Dollar Spread Betting, updated 16-Jan-12
The complete Australian Dollar - US Dollar forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Australian Dollar - US Dollar currency market, how to spread bet on FX and...read article: Australian Dollar - US Dollar Spread Betting.
Euro - Swiss Franc Spread Betting, updated 17-Jan-12
The complete Euro - Swiss Franc forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Euro - Swiss Franc currency market, how to spread bet on FX and...read article: Euro - Swiss Franc Spread Betting.
Euro - Yen Spread Betting, updated 17-Jan-12
The complete Euro - Yen forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Euro - Yen currency market, how to spread bet on FX and...read article: Euro - Yen Spread Betting.
Sterling - Yen Spread Betting, updated 17-Jan-12
The complete Sterling - Yen forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Sterling - Yen currency market, how to spread bet on FX and...read article: Sterling - Yen Spread Betting.
Euro - Canadian Dollar Spread Betting, updated 17-Jan-12
The complete Euro - Canadian Dollar forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Euro - Canadian Dollar currency market, how to spread bet on FX and...read article: Euro - Canadian Dollar Spread Betting.
Euro - Australian Dollar Spread Betting, updated 17-Jan-12
The complete Euro - Australian Dollar forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Euro - Australian Dollar currency market, how to spread bet on FX and...read article: Euro - Australian Dollar Spread Betting.
Swiss Franc - Yen Spread Betting, updated 17-Jan-12
The complete Swiss Franc - Yen forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Swiss Franc - Yen currency market, how to spread bet on FX and...read article: Swiss Franc - Yen Spread Betting.
New Zealand Dollar - US Dollar Spread Betting, updated 17-Jan-12
The complete New Zealand Dollar - US Dollar forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the New Zealand Dollar - US Dollar currency market, how to spread bet on FX and...read article: New Zealand Dollar - US Dollar Spread Betting.
Australian Dollar - Yen Spread Betting, updated 17-Jan-12
The complete Australian Dollar - Yen forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Australian Dollar - Yen currency market, how to spread bet on FX and...read article: Australian Dollar - Yen Spread Betting.
Sterling - Canadian Dollar Spread Betting, updated 17-Jan-12
The complete Sterling - Canadian Dollar forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Sterling - Canadian Dollar currency market, how to spread bet on FX and...read article: Sterling - Canadian Dollar Spread Betting.
Australian Dollar - Canadian Dollar Spread Betting, updated 30-Jan-12
The complete Australian Dollar - Canadian Dollar forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Australian Dollar - Canadian Dollar currency market, how to spread bet on FX and...read article: Australian Dollar - Canadian Dollar Spread Betting.
Australian Dollar - New Zealand Dollar Spread Betting, updated 30-Jan-12
The complete Australian Dollar - New Zealand Dollar forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Australian Dollar - New Zealand Dollar currency market, how to spread bet on FX and...read article: Australian Dollar - New Zealand Dollar Spread Betting.
Dollar - Danish Krone Spread Betting, updated 30-Jan-12
The complete Dollar - Danish Krone forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Dollar - Danish Krone currency market, how to spread bet on FX and...read article: Dollar - Danish Krone Spread Betting.
Dollar - Norwegian Krone Spread Betting, updated 30-Jan-12
The complete Dollar - Norwegian Krone forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Dollar - Norwegian Krone currency market, how to spread bet on FX and...read article: Dollar - Norwegian Krone Spread Betting.
Dollar - South African Rand Spread Betting, updated 30-Jan-12
The complete Dollar - South African Rand forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Dollar - South African Rand currency market, how to spread bet on FX and...read article: Dollar - South African Rand Spread Betting.
Dollar - Swedish Krona Spread Betting, updated 30-Jan-12
The complete Dollar - Swedish Krona forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Dollar - Swedish Krona currency market, how to spread bet on FX and...read article: Dollar - Swedish Krona Spread Betting.
Euro - New Zealand Dollar Spread Betting, updated 30-Jan-12
The complete Euro - New Zealand Dollar forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Euro - New Zealand Dollar currency market, how to spread bet on FX and...read article: Euro - New Zealand Dollar Spread Betting.
Euro - Norwegian Krone Spread Betting, updated 30-Jan-12
The complete Euro - Norwegian Krone forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Euro - Norwegian Krone currency market, how to spread bet on FX and...read article: Euro - Norwegian Krone Spread Betting.
Euro - South African Rand Spread Betting, updated 30-Jan-12
The complete Euro - South African Rand forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Euro - South African Rand currency market, how to spread bet on FX and...read article: Euro - South African Rand Spread Betting.
Euro - Swedish Krona Spread Betting, updated 30-Jan-12
The complete Euro - Swedish Krona forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Euro - Swedish Krona currency market, how to spread bet on FX and...read article: Euro - Swedish Krona Spread Betting.
New Zealand Dollar - Canadian Dollar Spread Betting, updated 30-Jan-12
The complete New Zealand Dollar - Canadian Dollar forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the New Zealand Dollar - Canadian Dollar currency market, how to spread bet on FX and...read article: New Zealand Dollar - Canadian Dollar Spread Betting.
New Zealand Dollar - Swiss Franc Spread Betting, updated 27-Jan-12
The complete New Zealand Dollar - Swiss Franc forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the New Zealand Dollar - Swiss Franc currency market, how to spread bet on FX and...read article: New Zealand Dollar - Swiss Franc Spread Betting.
New Zealand Dollar - Yen Spread Betting, updated 27-Jan-12
The complete New Zealand Dollar - Yen forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the New Zealand Dollar - Yen currency market, how to spread bet on FX and...read article: New Zealand Dollar - Yen Spread Betting.
Sterling - Australian Dollar Spread Betting, updated 27-Jan-12
The complete Sterling - Australian Dollar forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Sterling - Australian Dollar currency market, how to spread bet on FX and...read article: Sterling - Australian Dollar Spread Betting.
Sterling - South African Rand Spread Betting, updated 27-Jan-12
The complete Sterling - South African Rand forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Sterling - South African Rand currency market, how to spread bet on FX and...read article: Sterling - South African Rand Spread Betting.
Sterling - Swiss Franc Spread Betting, updated 27-Jan-12
The complete Sterling - Swiss Franc forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Sterling - Swiss Franc currency market, how to spread bet on FX and...read article: Sterling - Swiss Franc Spread Betting.
US Dollar - Singapore Dollar Spread Betting, updated 27-Jan-12
The complete US Dollar - Singapore Dollar forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the US Dollar - Singapore Dollar currency market, how to spread bet on FX and...read article: US Dollar - Singapore Dollar Spread Betting.
Australian Dollar - Singapore Dollar Spread Betting, updated 27-Jan-12
The complete Australian Dollar - Singapore Dollar forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Australian Dollar - Singapore Dollar currency market, how to spread bet on FX and...read article: Australian Dollar - Singapore Dollar Spread Betting.
Australian Dollar - Swiss Franc Spread Betting, updated 27-Jan-12
The complete Australian Dollar - Swiss Franc forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Australian Dollar - Swiss Franc currency market, how to spread bet on FX and...read article: Australian Dollar - Swiss Franc Spread Betting.
Sterling - New Zealand Dollar Spread Betting, updated 27-Jan-12
The complete Sterling - New Zealand Dollar forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Sterling - New Zealand Dollar currency market, how to spread bet on FX and...read article: Sterling - New Zealand Dollar Spread Betting.
Singapore Dollar - Yen Spread Betting, updated 27-Jan-12
The complete Singapore Dollar - Yen forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Singapore Dollar - Yen currency market, how to spread bet on FX and...read article: Singapore Dollar - Yen Spread Betting.
Canadian Dollar - Yen Spread Betting, updated 27-Jan-12
The complete Canadian Dollar - Yen forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Canadian Dollar - Yen currency market, how to spread bet on FX and...read article: Canadian Dollar - Yen Spread Betting.
Canadian Dollar - Swiss Franc Spread Betting, updated 27-Jan-12
The complete Canadian Dollar - Swiss Franc forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Canadian Dollar - Swiss Franc currency market, how to spread bet on FX and...read article: Canadian Dollar - Swiss Franc Spread Betting.
Dollar - Czech Koruna Spread Betting, updated 06-Feb-12
The complete Dollar - Czech Koruna forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Dollar - Czech Koruna currency market, how to spread bet on FX and...read article: Dollar - Czech Koruna Spread Betting.
Dollar - Hungarian Forint Spread Betting, updated 06-Feb-12
The complete Dollar - Hungarian Forint forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Dollar - Hungarian Forint currency market, how to spread bet on FX and...read article: Dollar - Hungarian Forint Spread Betting.
Dollar - Mexican Peso Spread Betting, updated 06-Feb-12
The complete Dollar - Mexican Peso forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Dollar - Mexican Peso currency market, how to spread bet on FX and...read article: Dollar - Mexican Peso Spread Betting.
Dollar - Polish Zloty Spread Betting, updated 06-Feb-12
The complete Dollar - Polish Zloty forex spread betting guide. Where to trade, where to find live prices and spread betting charts on the Dollar - Polish Zloty currency market, how to spread bet on FX and...read article: Dollar - Polish Zloty Spread Betting.
Forex Spread Trading on Pound / Yen, updated 11-Dec-08
Financial spread trading Sterling / Yen. Forex news, narrow spreads and where to find live prices....read article: Forex Spread Trading on Pound / Yen.
Financial Spread Betting Blog - FX Trading, updated 13-Aug-07
The popular Forex market of EUR/USD has been decreasing and is at its lowest value for a month. Is it worth backing the market to return? At the moment the EUR / USD (Sept) market has a quote of 1.3631 - 1.3639. As with many markets...read article: Financial Spread Betting Blog - FX Trading.
Spread Bet on Forex, updated 05-Dec-08
Forex spread betting comparison table, the spreads and minimum stakes from some of the leading companies...read article: Spread Bet on Forex.
Spread Betting on FX, updated 28-Jan-09
Online forex spread betting news and free live prices. In the Forex markets GBP v USD fell to a 14 month low and is trading below the $2 mark to around $1.9945. With Financial Spreads, the Sterling / Dollar (December) market is trading at 1.9971 - 1.9974 suggesting that they don't think there will be a quick recovery....read article: Spread Betting on FX.
|
|
Q) Average Trading Results?
A) Get free spread betting tips, offers, price updates, important news and more!
|
|
