Guide to Australian Dollar/Canadian Dollar Spread Betting

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Financial Spreads: Spread Betting and CFD Trading

Where Can I Spread Bet on AUD/CAD?

When using a Financial Spreads account investors can trade on a wide array of foreign exchange pairs, markets include Australian dollar/Canadian dollar in addition to the Australian dollar/US dollar, sterling/dollar and sterling/Swiss Franc.

Where Can I Access Live AUD/CAD Prices?

When trading with FinancialSpreads clients can take a position on over 1,000 live CFD trading and spread betting prices including AUD/CAD and a large range of other foreign exchange, commodities, equities and stock markets.

Where Can I Get Live AUD/CAD Charts?

When trading with FinancialSpreads you can access real time trading charts for AUD/CAD and more than a thousand other CFD and financial spread betting markets.

To help your analysis, the charting package comes with a wide variety of advanced options:
Sample FinancialSpreads forex trading chart:

Forex Spread Betting Charts



How to Financial Spread Bet on AUD/CAD

As an example, let's imagine that you go on the FinancialSpreads website and the platform is showing a price of:

  AUD/CAD Rolling Spot Sell

0.9682
Buy

0.9685


This is a brief guide to how it works...

Spread Trading Market:AUD/CAD Rolling Spot
The Spread:C$0.9682 - C$0.9685
How This Works:Now you can bet on the AUD/CAD Rolling Spot market to move:

  Spread Betting Above C$0.9685, or
  Spread Betting Below C$0.9682

This market is a 'Rolling' market and so there is no settlement date for this spread bet. If you decide not to close your position and the trading session ends then your trade will automatically roll over to the next trading day.

Note that if a trade rolls over then you will normally either be credited or charged for overnight financing based on whether you are speculating on the market to fall or rise. For further information also see Rolling Spread Bets.
Units (Points) Traded:Spread bets on the AUD/CAD market are made in £x per point.

Where a point is C$0.0001 of the currency pair's price movement.

E.g. if AUD/CAD moves by C$0.0040 then you would lose / win 40 multiples of your stake.
Stake Size:You choose how much you want to stake per point, e.g. £2 per point, £5 per point, £10 per point etc.
Simplified Example:If, as an example, your stake was £3 per point and AUD/CAD changes by C$0.0028 (28 points), you would win / lose £3 per point x 28 points = £84.


Worked Example - Going Long of AUD/CAD

Spread trading on the currency market to move up

You Choose to Go Long or Short: AUD/CAD moving:

  Spread Betting Above C$0.9685? or
  Spread Betting Below C$0.9682?

Let's Assume You Decide to Buy:   Spread Betting Above C$0.9685
You Decide Your Stake Size, Let's Say You Select: £2 per point
So What Happens Now?
  • You make a profit of £2 for each point (C$0.0001) AUD/CAD goes higher than C$0.9685
  • You will make a loss of £2 for every point (C$0.0001) AUD/CAD goes below C$0.9685
If You Are Betting on a Market to Increase Your P/L = (Final Price - Opening Price) x stake
 
Trading Situation 1
AUD/CAD climbs and the spread betting market is revised and moved to C$0.9738 - C$0.9741, therefore Financial Spreads would show:   0.9738   0.9741
Lock in a Profit? You may decide to leave your bet open or close it, i.e. close your position for a profit. For this example, you opt to close your position and sell at C$0.9738.
Your P/L = (Final Price - Opening Price) x stake
(C$0.9738 - C$0.9685) x £2 per point (£2 per C$0.0001)
C$0.0053 x £2 per point
53 points x £2 per point
Your P/L = £106 profit
 
Trading Situation 2
AUD/CAD moves lower and the spread trading market is revised to C$0.9638 - C$0.9641, therefore you'd see:   0.9638   0.9641
Time to Restrict the Loss? At this point, you can choose to leave your position open or close it, i.e. close your spread bet to restrict your loss. In this example you choose to settle your bet and sell the market at C$0.9638.
Your P/L = (Final Price - Opening Price) x stake
(C$0.9638 - C$0.9685) x £2 per point (£2 per C$0.0001)
-C$0.0047 x £2 per point
-47 points x £2 per point
Your P/L = -£94 loss


Spread Betting Example - Taking a Short Position on AUD/CAD

Online spread betting on the currency market to fall

You Decide to Buy or Sell: AUD/CAD to push:

  Spread Betting Above C$0.9685? or
  Spread Betting Below C$0.9682?

Let's Say You Choose to Go Short:   Spread Betting Below C$0.9682
You Choose How Much to Risk, Let's Say You Opt For: £1 per point
So Now What Happens?
  • You will make a loss of £1 for every point (C$0.0001) AUD/CAD goes above C$0.9682
  • You make a profit of £1 for every point (C$0.0001) AUD/CAD falls below C$0.9682
When Going Short of a Market Your P/L = (Opening Price - Final Price) x stake
 
Trading Situation 3
AUD/CAD goes lower and the financial spread betting market is moved to C$0.9586 - C$0.9589. I.e.   0.9586   0.9589
Close and Take Your Profit? At this point, you may decide to let your position run or close it to lock in a profit. In this instance you decide to close your bet by buying the market at C$0.9589.
Your P/L = (Opening Price - Final Price) x stake
(C$0.9682 - C$0.9589) x £1 per point (£1 per C$0.0001)
C$0.0093 x £1 per point
93 points x £1 per point
Your P/L = £93 profit
 
Trading Situation 4
AUD/CAD rises and the market is revised and is set at C$0.9762 - C$0.9765, so you would see:   0.9762   0.9765
Time to Restrict Your Loss?You can opt to keep your trade open or close it, i.e. close your spread bet and limit your loss. For this example, you decide to settle your position and buy the market at C$0.9765.
Your P/L = (Opening Price - Final Price) x stake
(C$0.9682 - C$0.9765) x £1 per point (£1 per C$0.0001)
-C$0.0083 x £1 per point
-83 points x £1 per point
Your P/L = -£83 loss

Where Can I Practice Financial Spread Betting on AUD/CAD?

FinancialSpreads offers investors the ability to try new ideas by using a Demo Account on CFD and spread betting markets like AUD/CAD.

The Financial Spreads Demo Account offers access to a large selection of markets such as FX pairs, stocks, commodities and stock market indices.

Open a Free Financial Spreads Demo Account



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support@financialspreads.com

Also see:
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Spread betting & CFDs trading are complex instruments & come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading these products with this provider. You should consider whether you understand how these products work & whether you can afford to take the high risk of losing your money. Click here to see the risk warning notice.