Forex Spread Betting - Spread Bet on Foreign Exchange Markets
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How to Spread Bet on Forex - an introduction to foreign exchange betting. Currencies fluctuate for a number of reasons eg changes interest rates, speculative trading and central bank intervention. If you are looking for FX trading information, you're on the right website.
Popular FX questions:
Q) Where can I Spread Bet on FX?
Q) Where can I Trade for Free on FX?
Q) How to Spread Bet on FX?
Q) Where can I find Free Live Prices on FX?
Q) Where can I find Free FX Charts?
Q) Where can I find free FX Trading News?
Q) Where can I find Narrow FX Spreads?
Forex Narrow Spreads Comparison
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| GBP / USD Daily - Spread Size |
3 |
5 |
3 |
3 |
4 |
3 |
3 |
| GBP / USD Daily - Min Stake |
£1 |
£5 |
£1 |
£1 |
£0.10 |
£0.50 |
£1 |
| GBP / USD Future - Spread Size |
8 |
8 |
8 |
8 |
8 |
12 |
8 |
| GBP / USD Future - Min Stake |
£1 |
£2 |
£1 |
£1 |
£0.10 |
£1 |
£1 |
| EUR / GBP Daily - Spread Size |
2 |
5 |
2 |
4 |
3 |
2 |
2 |
| EUR / GBP Daily - Min Stake |
£1 |
£2 |
£1 |
£1 |
£0.10 |
£0.50 |
£1 |
| EUR / GBP Future - Spread Size |
6 |
- |
6 |
10 |
8 |
10 |
6 |
| EUR / GBP Future - Min Stake |
£1 |
- |
£1 |
£1 |
£0.10 |
£1 |
£1 |
| EUR / USD Daily - Spread Size |
2 |
5 |
2 |
3 |
3 |
2 |
2 |
| EUR / USD Daily - Min Stake |
£1 |
£5 |
£1 |
£1 |
£0.10 |
£0.50 |
£1 |
| EUR / USD Future - Spread Size |
6 |
8 |
6 |
10 |
8 |
12 |
6 |
| EUR / USD Future - Min Stake |
£1 |
£5 |
£1 |
£1 |
£0.10 |
£1 |
£1 |
| USD / JPY Daily - Spread Size |
2 |
6 |
2 |
4 |
3 |
3 |
2 |
| USD / JPY Daily - Min Stake |
£1 |
£2 |
£1 |
£1 |
£0.10 |
£0.50 |
£1 |
| USD / JPY Future - Spread Size |
8 |
20‡ |
8 |
10† |
8 |
12 |
8 |
| USD / JPY Future - Min Stake |
£1 |
£2 |
£1 |
£1 |
£0.10 |
£1 |
£1 |
Comparison Notes
How to Spread Bet on Forex / Foreign Exchange: Selling FX GBP / US$
You think Sterling could weaken against the Dollar over the next few months. You want to take advantage and sell.
You check a spread betting website and see the GBP / US$ foreign exchange rate is quoted as 1.8846 - 1.8856. Because you think the dollar will strengthen you sell at 1.8846 for say a stake of £2 per point movement (0.0001). ie £2 per tick.
On the back of strong figures from the US, the price of Sterling (£) falls against the US Dollar ($) to 1.8452.
Your profit is calculated by calculating the difference between the closing level (1.8452) and the opening price (1.8846) and multiplying by the stake.
Profit = (1.8846 - 1.8452) / 0.0001 x £2 per point stake
= 394 points x £2 per point = £788 profit
However had Sterling held its value better the price could have closed at 1.8942 and you would have lost.
Loss = (1.8846 - 1.8942) / 0.0001 x £2 per point stake
= -96 points x £2 per point = £192 loss
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How to Spread Bet on Forex / Foreign Exchange: Buying FX Sterling/US Dollar Example 2
You think Sterling will strengthen against the Dollar over the next few months. You call check the quote online of 'GBP / US$ June'. The expiry date being the second Wednesday in June. You see a spread of 1.8440 - 1.8450 US$ to £1.
ie £1 is worth US$1.8440 to US$1.8450.
Because you think the GBP will strengthen you Buy at 1.8450 for say a stake of £5 per point movement (0.0001). ie £5 per tick.
On the back of weak figures from the US, the price of Sterling (£) rises against the US Dollar ($) to 1.8522.
Your profit is calculated by calculating the difference between the closing level (1.8522) and the opening price (1.8450) and multiplying by the stake.
Profit = (1.8522 - 1.8450) / 0.0001 x £5 per point stake
= (0.0072 / 0.0001) x £5 per point = £360 profit
However had the Dollar held its value and there was no change the markets price could have settled at 1.8442 and you would have lost.
Loss = (1.8442 - 1.8450) x £5 per point stake
Loss = (-0.0008 / 0.0001) x £5 per point stake
= -8 points x £5 per point = £40 loss
ie in this case although the price didn't drop, there was little movement in the market and it settled 'within the spread'. Therefore you would have lost money.
Forex Spread Betting Markets
Each company will have their own specific online markets however a number of the companies will offer most, if not all, of the following:
- AUD / JPY
- AUD / NZD
- AUD / USD (Aus Dollar / US Dollar)
- CHF / JPY (Swiss Franc / Japanese Yen)
- EUR / AUD
- EUR / CHF
- EUR / GBP (Euro / Pound), (Euro / £)
- EUR / JPY
- EUR / USD (Euro / Dollar), (Euro / $)
- GBP / AUD
- GBP / CHF
- GBP / JPY (£ / ¥)
- GBP / NZD
- GBP / USD (Sterling / Dollar), (£/$)
- NZD / USD (New Zealand / Dollar)
- USD / CAD (Dollar / Canadian Dollar)
- USD / CHF (Dollar / Swiss Franc)
- USD / JPY (Dollar / Yen)
The Best Spread Betting Companies?
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How to Spread Bet
How to spread bet on Bonds and Interest Rates
How to spread bet on Commodities
How to spread bet on Forex
How to spread bet on Shares
How to spread bet on Stock Market Indices
How to spread bet on Sports
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 Betting' by JW, updated 22-Jan-09
For related pages also see:
Forex Spread Betting, updated 02-Jul-09
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EUR / JPY Spread Betting, updated 28-Jun-09
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GBP / USD Spread Betting, updated 28-Jun-09
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USD / JPY Spread Betting, updated 28-Jun-09
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EUR / USD Spread Betting, updated 28-Jun-09
If the Euro is pushing ever higher against the Dollar and the Pound that poses a few questions. Who offers narrow FX spreads? How to trade the Euro FX markets? Where to find live Euro prices and charts? We've got the answers...read article.
EUR / GBP Spread Betting, updated 28-Jun-09
EUR / GBP trading information, where to find free EUR / GBP charts and prices, how to spread bet on Forex, including the EUR / GBP...read article.
Forex Spread Trading May 2009, updated 22-May-09
FX market update: The same happened to GBP/EUR which saw a very sharp fall yesterday morning, but recovered afterwards throughout the rest of the day. At the moment though, the euro is...read article.
Forex Spread Betting May 2009, updated 08-May-09
FX market: Sterling's good recent run came to an abrupt end after the BoE announced its next tranche of asset purchases. The market was taken a little by surprise as many were expecting the Bank not...read article.
Forex Spread Trading April 2009, updated 24-Apr-09
FX market: EUR/USD is back above $1.3000, currently at $1.3070 with the Euro making a bit of ground on Sterling as well as GBP/EUR heads back towards...read article.
Forex Spread Betting April 2009, updated 10-Apr-09
FX market: With EUR/USD, our spread betting accounts are very much two way with buyers matching sellers and in truth it is difficult to argue that ...read article.
Forex Spread Trading March 2009, updated 27-Mar-09
FX market update: FX markets are still wary of the recent indication that the US might not be opposed to the creation of a 'Super Currency' run by the IMF, the mere mention of which sent the dollar...read article.
Forex Spread Betting March 2009, updated 13-Mar-09
FX market: The failure last Friday to push resistance versus the dollar at $1.4340 was not helped by the overall view taken about the 'quantitative easing' policy of the...read article.
Forex Spread Trading February 2009, updated 27-Feb-09
FX market update: Against the Euro, the pound seems to have settled into a £1.1000 to £1.1500 range...read article.
Forex Spread Betting February 2009, updated 13-Feb-09
FX market: Virtually every major market, having tried valiantly to break out of the current trading ranges, is now pretty much where they closed on Wednesday evening. GBP/USD had a solid look at...read article.
Forex Spread Bets January 2009, updated 31-Jan-09
FX market update: Currency markets continue to be the focal point with the battle for the GBP/USD rate to get...read article.
Forex Spread Trading January 2009, updated 16-Jan-09
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Forex Spread Betting January 2009, updated 02-Jan-09
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Forex Spread Trading December 2008, updated 19-Dec-08
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Forex Spread Betting December 2008, updated 05-Dec-08
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Forex Spread Trading November 2008, updated 21-Nov-08
FX market: The GBP / USD spread is now $1.5082 - $1.5085 and, to be honest, there is little in the way of resistance or support around the current price. The short term falling trend line is now at...read article.
Forex Spread Betting November 2008, updated 07-Nov-08
FX market update: The volatility in the GBP / USD market is becoming ever more extreme with the last eleven trading days averaging over 5¢ a day high/low range (3%). This variation represents a...read article.
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Forex Spread Betting October 2008, updated 10-Oct-08
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Forex Spread Betting September 2008, updated 12-Sep-08
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Forex Financial Spread Betting June 2008, updated 06-Jun-08
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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.
Forex Spread Betting, updated 22-Jan-09
Foreign exchange betting. Currencies fluctuate for a number of reasons eg changes interest rates, speculative trading and central bank intervention. If you are looking for FX trading information ...read article.
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