GBP/JPY Spread Betting

The CleanFinancial guide to GBP/JPY spread betting.

• Where Can I Spread Bet on GBP/JPY?
• Live GBP/JPY Charts
• Live GBP/JPY Prices
• GBP/JPY Trading News and Analysis
• Where Can I Trade GBP/JPY for Free?
• Where Can I Practice Trading GBP/JPY?
• How to Spread Bet on GBP/JPY?
• Forex Spread Betting Guide

Live GBP/JPY Chart & Prices

The live CFD chart below will give readers a valuable guide to the GBP/JPY FX market.


The Plus 500 chart above usually shows the near-term GBP/JPY futures market (not the spot price).

If you want to look at up-to-the-minute financial spread betting prices and charts for GBP/JPY, you may require a spread betting account.

In addition, a spreads account will give you access to spot markets. Users should note that opening such an account is subject to suitability and status checks.

Should your new account be accepted then you will be able to log in and view the live charts/prices. On most platforms, these are provided for free. What’s the catch? You could get an occasional sales call or email from the spread betting broker.

If you do trade, be aware that financial spread trading and contracts for difference do carry a high degree of risk and can result in losses that exceed your initial investment.

Where Can I Spread Bet on GBP/JPY?

Investors can take a view on GBP/JPY by opening an account with any of the following spread betting companies:

• City Index
• Financial Spreads
• IG
• InterTrader
• Spreadex

GBP/JPY Market Analysis and Trading News

» More forex trading views and analysis.

Professional Level Charts for GBP/JPY

Whilst the charts normally vary across the industry, to aid your analysis, they often come with features and tools that include:

• A host of different time periods such as 2 minutes, 15 minutes, 2 hours etc.
• Different chart types such as candle charts and line charts
• Drawing tools and features such as Trendlines, Fibonacci Arcs, Fans and Time Zones
• Technical indicators and overlays such as Exponential Moving Average, RSI, True Strength Index (TSI) etc.

The charts from Financial Spreads also come with more advanced features:

• BackTesting functions
• Automatic alerts when your chosen market hits a specific level
  
  

Sample FinancialSpreads forex rate candle chart



The following online spread betting companies let their clients have access to real time prices/charts:

• City Index (read review)
• ETX Capital (read review)
• Financial Spreads (read review)
• Finspreads (read review)
• IG (read review)
• Inter Trader (read review)
• Spreadex (read review)

Where Can I Trade GBP/JPY for Free?

Trading isn’t without risk. Having said that, if you want to open a Demo Account, where you can try out financial spread betting, see below for further details.

When thinking about which trading option might work for you, also remember that in the UK, financial spread betting is currently tax free*.

If you want to try a free trading website, keep in mind that investors are able to speculate on GBP/JPY without paying any commissions or brokers’ fees through companies like:

• City Index
• Financial Spreads
• IG Index
• Inter Trader
• Spreadex

Free Demo Account

If you want an entirely free Test Account / Demo Account which lets users try financial spread betting, and markets such as EUR/GBP, the FTSE 100, USD/JPY and GBP/JPY, then you could look at:

• Financial Spreads
• Inter Trader

The spread betting firms listed above currently offer a Test Account which lets users try out new trading strategies, apply an array of trading orders and access professional charts, including candlestick and line charts.

How to Spread Bet on GBP/JPY?

As with a lot of financial markets, investors can speculate on currency pairs, such as GBP/JPY, to rise or fall.

Looking at a spread betting site like InterTrader, you can see they are showing the GBP/JPY Rolling Daily market at ¥125.020 – ¥125.050. As a result, an investor can spread bet on the GBP/JPY rate:

  Rising above ¥125.050, or
  Falling below ¥125.020

When making a spread bet on GBP/JPY you trade in £x per point where a point is ¥0.010 of the pairs movement. Therefore, if you decide to invest £4 per point and GBP/JPY moves 39.0 points then there would be a difference to your bottom line of £156. £4 per point x ¥0.390 = £4 per point x 39.0 points = £156.

Rolling Daily Foreign Exchange Markets

You should note that this is a Rolling Daily Market which means that unlike a normal spread betting futures market, there is no settlement date. As a result, if your trade is still open at the end of the trading day, it just rolls over into the next session.

If you allow your FX bet to roll over then you will usually be charged a small overnight financing fee. For a more detailed example see Rolling Daily Spread Betting.

GBP/JPY Trading Example 1

If you consider the above spread of ¥125.020 – ¥125.050 and assume:

• you have done your market research, and
• it leads you to feel that the GBP/JPY rate will increase and go above ¥125.050

then you might buy at ¥125.050 and invest, for example, £2 per point.

With such a bet you make a profit of £2 for every point (¥0.010) that the GBP/JPY foreign exchange rate pushes higher than ¥125.050. Of course, such a bet also means that you will make a loss of £2 for every point that the GBP/JPY market goes lower than ¥125.050.

Looked at another way, should you buy a spread bet then your profits (or losses) are calculated by taking the difference between the closing 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 started to move upwards then you could choose to close your spread bet so that you can lock in your profit. As an example, if the market increased then the spread, set by the spreads firm, might be adjusted to ¥125.738 – ¥125.768. In order to close your trade you would sell at ¥125.738. As a result, with the same £2 stake you would calculate your profit as:

P&L = (Closing Price – Initial Price) x stake
P&L = (¥125.738 – ¥125.050) x £2 per point stake
P&L = ¥0.688 x £2 per point stake
P&L = 68.8 points x £2 per point stake
P&L = £137.60 profit

Trading FX, by spread trading or otherwise, is not always easy. In the above example, you had bet that the forex pair would increase. Nevertheless, the FX rate might decrease.

If the GBP/JPY market had fallen then you could close your position in order to limit your losses.

If the market fell to ¥124.300 – ¥124.330 you would close your trade by selling at ¥124.300. If so, that would mean you would lose:

P&L = (Closing Price – Initial Price) x stake
P&L = (¥124.300 – ¥125.050) x £2 per point stake
P&L = -¥0.750 x £2 per point stake
P&L = -75.0 points x £2 per point stake
P&L = -£150.00 loss

Note: GBP/JPY Rolling Daily market correct as of 11-Sep-12.

How to Spread Bet on Sterling-Yen – Example 2

Looking at a spread betting website like Financial Spreads, you can see that they are currently pricing the Sterling-Yen Rolling Daily market at ¥127.788 – ¥127.818. Therefore, you can spread bet on the Sterling-Yen pair:

  Moving above ¥127.818, or
  Moving below ¥127.788

Whilst spread trading on Sterling-Yen you trade in £x per point where a point is ¥0.010 of the pairs movement. So, if you choose to have a stake of £3 per point and Sterling-Yen moves 24.0 points then that would alter your bottom line by £72. £3 per point x ¥0.240 = £3 per point x 24.0 points = £72.

So, if we consider the spread of ¥127.788 – ¥127.818 and make the assumptions:

• You have analysed the markets, and
• It leads you to feel that the Sterling-Yen rate will rise higher than ¥127.818

Then you might choose to buy a spread bet at ¥127.818 for a stake of, for the sake of argument, £4 per point.

So, you gain £4 for every point (¥0.010) that the Sterling-Yen rate rises above ¥127.818. Nevertheless, such a bet also means that you will make a loss of £4 for every point that the Sterling-Yen market goes lower than ¥127.818.

Looked at another way, should you buy a spread bet then your P&L is found by taking the difference between the final price of the market and the initial price you bought the market at. You then multiply that price difference by the stake.

With this in mind, if after a few days the currency rate rose then you might want to close your position and therefore lock in your profits.

As an example, should the market rise, the spread, set by the spread betting company, might move up to ¥128.125 – ¥128.155. You would close your position by selling at ¥128.125. As a result, with the same £4 stake:

P&L = (Final Level – Initial Level) x stake
P&L = (¥128.125 – ¥127.818) x £4 per point stake
P&L = ¥0.307 x £4 per point stake
P&L = 30.7 points x £4 per point stake
P&L = £122.80 profit

Speculating on the British Pound-Japanese Yen market is rarely straight forward. In this case, you wanted the forex rate to go up. Naturally, the FX rate might go down.

If this Pound-Yen market weakened, against your expectations, then you might decide to settle/close your trade to limit your losses.

Should the spread drop to ¥127.467 – ¥127.497 you would close your spread bet by selling at ¥127.467. Therefore, you would make a loss of:

P&L = (Final Level – Initial Level) x stake
P&L = (¥127.467 – ¥127.818) x £4 per point stake
P&L = -¥0.351 x £4 per point stake
P&L = -35.1 points x £4 per point stake
P&L = -£140.40 loss

Note – Sterling-Yen Rolling Daily forex market taken as of 18-Sep-12.