USD/ZAR Spread Betting
Where Can I Spread Bet on USD/ZAR? |
Currently, you are able to spread bet with no brokers' fees or commissions on USD/ZAR by opening an account with a number of spread betting companies:
Advert:
USD/ZAR Spread Betting, sponsored by FinancialSpreads.com.
You can spread bet on USD/ZAR with
Financial Spreads.
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Where Can I Spread Bet on USD/ZAR for Free? |
Investing in the markets is not without its risks. Having said that, if you want to try an entirely free Practice Account, which lets you try spread betting, then please see below for more details.
When deciding which investment option is right for you, don't forget that in the UK, spread betting is exempt from stamp duty, income tax and capital gains tax*.
If you want to try a low cost spread trading site then note that investors are able to financial spread bet on USD/ZAR without having to pay any commissions or brokers' fees via companies like:
If you are looking for a (free) virtual money Test Account / Practice Account that lets users try spread betting, and markets like the FTSE 100, crude oil, EUR/GBP and USD/ZAR, then you can always look into:
Each of these firms currently offer a free Demo Account that allows users to apply orders, test new trading strategies and review charts.
Where Can I Find Live Spread Betting Prices and Charts for USD/ZAR? |
The real time CFDs chart and prices below will give you a good guide to the USD/ZAR market.
The above chart, provided by Plus500, is usually based on the near-term USD/ZAR futures contract (not the daily market).
Should you want to study live spread trading charts/prices for USD/ZAR, you will generally need a spread betting account.
In addition, a spreads account will let you have access to the short term daily markets. Note: Opening any such account is subject to credit, status and suitability checks.
If your account application is approved then you can log in to check the live prices/charts. These are normally free. Having said that, you'll probably get an occasional sales email and/or call from the spread trading provider.
If you do decide to trade then, before you start, you should be aware that spread trading and CFD trading do involve a high level of risk to your funds and you can incur losses that exceed your initial deposit.
Advanced Charting Packages for USD/ZAR |
Though charts can differ between platforms, to help you with your technical analysis, they usually have user friendly tools and features, including:
- A range of time intervals e.g. 5 minutes, 1 hour, 1 month and so on
- A variety of chart types e.g. candle charts and bar charts
- Drawing options and tools e.g. Fibonacci retracements and trendlines
- Indicators and overlays e.g. Bollinger Bands, Relative Strength Index and so on
The charts on FinancialSpreads also offer advanced features:
- BackTesting functions
- Custom email notifications that trigger when a market reaches a pre-determined price
Sample forex chart
The spread trading brokers in the list below give their account holders access to real time trading charts and prices:
How to Spread Bet on USD/ZAR? |
As with a range of markets, an investor can spread bet on currency rates, like USD/ZAR, to either increase or decrease.
Looking at InterTrader, you can see that they are currently valuing the USD/ZAR Rolling Daily market at R 8.1345 - R 8.1495. This means you could spread bet on the USD/ZAR pair:
 Increasing above R 8.1495, or
 Decreasing below R 8.1345
Whilst making a spread bet on USD/ZAR you trade in £x per point where a point is R 0.0010 of the pairs movement. So, if you chose to have a stake of £5 per point and USD/ZAR moves 33.0 points then that would make a difference to your profit/loss of £165. £5 per point x R 0.0330 = £5 per point x 33.0 points = £165.
Rolling Daily Forex Markets
You should note that this is a Rolling Daily Market which means that it does not have a set closing date. If a trade is still open when the markets close at the end of the day, it will stay open and roll over into the next trading session.
If you do roll over an FX trade then you will pay a small overnight financing fee. For a fully worked example see Rolling Daily Spread Betting.
USD/ZAR Rolling Daily - FX Trading Example |
If you continue with the above spread of R 8.1345 - R 8.1495 and assume that:
- You have completed your FX market research, and
- Your analysis leads you to feel that the USD/ZAR market will increase and move above R 8.1495
Then you may choose to buy at R 8.1495 for a stake of, for the sake of argument, £3 per point.
With such a spread bet you make a profit of £3 for every point (R 0.0010) that the USD/ZAR rate rises higher than R 8.1495. However, it also means that you will make a loss of £3 for every point that the USD/ZAR market decreases below R 8.1495.
Looked at another way, if you were to ‘Buy’ a spread bet then your P&L is worked out by taking the difference between the settlement price of the market and the initial price you bought the spread at. You then multiply that difference in price by the stake.
If after a few hours the rate started to increase then you might want to close your spread bet so that you can lock in your profit.
As an example, should the market rise, the spread could change to R 8.1854 - R 8.2004. In order to close your position you would sell at R 8.1854. Accordingly, with the same £3 stake you would calculate your profit as:
Profit / loss = (Final Level - Opening Level) x stake
Profit / loss = (R 8.1854 - R 8.1495) x £3 per point stake
Profit / loss = R 0.0359 x £3 per point stake
Profit / loss = 35.9 points x £3 per point stake
Profit / loss = £107.70 profit
Speculating on forex, by spread trading or otherwise, is not always straightforward. In this case, you wanted the FX pair to rise. Naturally, it might fall.
If the USD/ZAR rate had started to drop then you could close your position to limit your losses.
So if the market fell to R 8.1189 - R 8.1339 then this means you would close your trade by selling at R 8.1189. This would result in a loss of:
Profit / loss = (Final Level - Opening Level) x stake
Profit / loss = (R 8.1189 - R 8.1495) x £3 per point stake
Profit / loss = R -0.0306 x £3 per point stake
Profit / loss = -30.6 points x £3 per point stake
Profit / loss = -£91.80 loss
Note: USD/ZAR Rolling Daily market accurate as of 11-Sep-12.
Advert:
USD/ZAR Spread Betting, sponsored by FinancialSpreads.com.
You can spread bet on USD/ZAR with
Financial Spreads.
|
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.
'USD/ZAR Spread Betting' by DB, updated 16-May-13
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