Sterling - South African Rand Spread Betting
Where Can I Spread Bet on Sterling - South African Rand? |
You can currently speculate on Sterling - South African Rand, in addition to a wide variety of similar spread trading markets, via:
Advert:
Sterling - South African Rand Spread Betting, sponsored by FinancialSpreads.com.
You can spread bet on Sterling - South African Rand with
Financial Spreads.
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Where Can I Spread Bet on Sterling - South African Rand for Free? |
Trading the markets involves an element of risk. Nevertheless, if you'd like to open an entirely free Test Account, which lets you try spread trading, please see below for more details.
When looking at which investment option is right for you, don't forget that in the UK, spread trading is currently tax free*, i.e. there is no capital gains tax, stamp duty or income tax.
If you're interested in a free spread trading site, you should keep in mind that investors can trade Sterling - South African Rand commission free and with no brokers' fees via companies like:
If you want a Test Account / Practice Account that allows you to try out financial spread betting, and markets like Sterling - South African Rand, then you can always take a look at:
Each of the spread trading firms listed above provide a free Demo Account that allows users to look at charts, practice with a range of trading orders and try out trading strategies.
How to Spread Bet on Sterling - South African Rand? |
As with a wide variety of markets, an investor can spread bet on forex pairs, like Sterling - South African Rand, to go up or down.
Looking at a financial spread betting site like Financial Spreads, we can see they are currently pricing the Sterling - South African Rand Rolling Daily market at R 13.3816 - R 13.4056. As a result, an investor could spread trade on the Sterling - South African Rand pair:
 Increasing higher than R 13.4056, or
 Decreasing lower than R 13.3816
When financial spread trading on Sterling - South African Rand you trade in £x per point where a point is R 0.0010 of the pairs movement. So, if you decided to have a stake of £4 per point and Sterling - South African Rand moves 23.0 points then that would change your bottom line by £92. £4 per point x R 0.0230 = £4 per point x 23.0 points = £92.
Rolling Daily Foreign Exchange Markets
You should note that this is a Rolling Daily Market which means that there is no closing date for this market. If you leave your trade open at the end of the day, it simply rolls over to the next session.
If you do roll over an FX bet then you are normally charged a small financing fee. Our article Rolling Daily Spread Betting goes into more detail about Rolling Daily Markets and includes a fully worked example.
Sterling - South African Rand Rolling Daily - Forex Trading Example |
If we consider the spread of R 13.3816 - R 13.4056 and assume that:
- You have analysed the foreign exchange markets, and
- You feel that the Sterling - South African Rand market will rise higher than R 13.4056
Then you might decide that you want to go long of the market at R 13.4056 for a stake of £2 per point.
So, you win £2 for every point (R 0.0010) that the Sterling - South African Rand rate moves above R 13.4056. On the other hand, it also means you will lose £2 for every point that the Sterling - South African Rand market falls lower than R 13.4056.
Put another way, should you ‘Buy’ a spread bet then your profits (or losses) are calculated by taking the difference between the final price of the market and the price you bought the spread at. You then multiply that difference in price by the stake.
Therefore, if after a few hours the currency rate rose then you might want to close your position so that you can lock in your profit.
Taking this a step further, if the market rose then the spread, set by the spread betting company, might move up to R 13.4760 - R 13.5000. To settle/close your trade you would sell at R 13.4760. So, with the same £2 stake this trade would make you a profit of:
Profit = (Final Value - Initial Value) x stake
Profit = (R 13.4760 - R 13.4056) x £2 per point stake
Profit = R 0.0704 x £2 per point stake
Profit = 70.4 points x £2 per point stake
Profit = £140.80 profit
Financial spread betting doesn't always work out as you would have liked. In this example, you wanted the currency pair to rise. Nevertheless, the forex rate can also go down.
If the Sterling - South African Rand rate decreased, contrary to your expectations, then you might decide to close/settle your position to stop any further losses.
Should the spread drop to R 13.3419 - R 13.3659 you would settle your trade by selling at R 13.3419. If so, your loss would be calculated as:
Loss = (Final Value - Initial Value) x stake
Loss = (R 13.3419 - R 13.4056) x £2 per point stake
Loss = R -0.0637 x £2 per point stake
Loss = -63.7 points x £2 per point stake
Loss = -£127.40 loss
Note - Sterling - South African Rand Rolling Daily spread betting price correct as of 18-Sep-12.
Where Can I Find Live Spread Betting Prices and Charts for Sterling - South African Rand? |
If you'd like to review live prices/charts for Sterling - South African Rand, you generally require a spread betting account. Readers should note that such accounts are normally dependent on status, suitability and credit checks.
If your new account is accepted then you will be able to log in and make use of the real time trading charts/prices. These are usually free. Having said that, you'll probably receive an occasional email or call from the spread trading broker.
If you decide to trade then, before you start, you should be aware that financial spread betting does involve a high level of risk and losses can exceed your initial deposit.
Although the charts tend to vary between platforms, they usually come with handy features such as:
- A wide range of time periods e.g. 5 minutes, 1 hour, 1 month etc
- Various chart views e.g. candlestick and bar charts
- Drawing features e.g. Trendlines and Fibonacci Retracements
- Overlays and indicators e.g. Moving Average, Chaikin's Volatility etc
The charts on Inter Trader also offer advanced features such as:
- Back Testing and Optimisation tools
- Custom email alerts when the markets hit a specific level
FinancialSpreads.com FX market candle chart
The spread trading firms listed below provide their clients with live prices/charts:
Advert:
Sterling - South African Rand Spread Betting, sponsored by FinancialSpreads.com.
You can spread bet on Sterling - South African Rand 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.
'Sterling - South African Rand Spread Betting' by DB, updated 13-May-13
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