Guide to Australian Dollar/New Zealand Dollar Spread Betting

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Financial Spreads: Spread Betting and CFD Trading

Where Can I Spread Bet on AUD/NZD?

FinancialSpreads.com provides investors with a wide range of foreign exchange markets including AUD/NZD in addition to the pound/dollar, euro/dollar and euro/Swiss franc.

Where Can I Access Live AUD/NZD Prices?

FinancialSpreads provides investors with real time prices on 1,000+ financial spread betting and CFD markets like AUD/NZD and a wide variety of other forex, commodities, stock markets and shares prices.

Where Can I Get Live AUD/NZD Charts?

When trading with FinancialSpreads investors can use real-time trading charts for AUD/NZD and over 1,000 other CFD and spread betting markets.

To aid your technical analysis, the charting package comes with an array of advanced functions:
Sample forex spread trading chart:

Forex Spread Betting Charts



Financial Spread Betting on AUD/NZD

Let's suppose that you look at the FinancialSpreads site and the spread betting platform is showing a quote of:

  AUD/NZD Rolling Spot Sell

1.0419
Buy

1.0423


This is an example of how it works...

Spread Trading Market:AUD/NZD Rolling Spot
Spread Trading Price:NZ$1.0419 - NZ$1.0423
What This Means:You can trade on the AUD/NZD Rolling Spot market moving:

  Spread Betting Higher than NZ$1.0423, or
  Spread Betting Lower than NZ$1.0419

This market is a Rolling market so it does not have an expiry date. 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 does roll over then you will either be credited or debited for overnight financing depending on the direction of your bet. For more information see Rolling Spread Bets.
Trading Units:Financial spread bets on the AUD/NZD market are made in £x per point.

Where a point is NZ$0.0001 of the forex pair's price movement.

E.g. if AUD/NZD changes by NZ$0.0045 then you would win or lose 45 times your stake.
Stake Size:You work out your stake per point, e.g. £1 per point, £5 per point, £15 per point etc.
Quick Staking Exercise:For example, if you had a stake of £5 per point and AUD/NZD moves NZ$0.0029 (29 points), you would lose / win £5 per point x 29 points = £145.


Trading Example - Going Long of AUD/NZD

Financial spread trading on the forex market to rise

You Now Work Out Whether to Go Long or Short: AUD/NZD to go:

  Spread Betting Higher than NZ$1.0423? or
  Spread Betting Lower than NZ$1.0419?

You Might Decide to Go Long:   Spread Betting Higher than NZ$1.0423
You Choose Your Stake Size, Opting for: £3 per point
So What Now?
  • You will make a profit of £3 for every point (NZ$0.0001) AUD/NZD rises higher than NZ$1.0423
  • You will lose £3 for each point (NZ$0.0001) AUD/NZD moves lower than NZ$1.0423
If You Are Betting on a Market to Go Up Your Profits (or Losses) = (Closing Price - Opening Price) x stake
 
Example 1
AUD/NZD climbs and the spread betting market adjusts and moves to NZ$1.0465 - NZ$1.0469:   1.0465   1.0469
Close and Take Your Profit? You can opt to leave your bet open or close it to take a profit. For this example, you choose to settle your trade by selling at NZ$1.0465.
Your Profits (or Losses) = (Closing Price - Opening Price) x stake
(NZ$1.0465 - NZ$1.0423) x £3 per point (£3 per NZ$0.0001)
NZ$0.0042 x £3 per point
42 points x £3 per point
Your Profits (or Losses) = £126 profit
 
Example 2
AUD/NZD goes lower and the spread trading market is revised and set at NZ$1.0387 - NZ$1.0391, i.e. you would see:   1.0387   1.0391
Limit Your Loss? At this point, you could choose to keep your trade open or close it, i.e. close your spread bet to limit your loss. In this example you choose to settle your bet by selling the market at NZ$1.0387.
Your Profits (or Losses) = (Closing Price - Opening Price) x stake
(NZ$1.0387 - NZ$1.0423) x £3 per point (£3 per NZ$0.0001)
-NZ$0.0036 x £3 per point
-36 points x £3 per point
Your Profits (or Losses) = -£108 loss


Spread Betting Example - Going Short of AUD/NZD

Online spread betting on the forex market to go down in value

You Now Work Out Whether to Buy or Sell: AUD/NZD to move:

  Spread Betting Higher than NZ$1.0423? or
  Spread Betting Lower than NZ$1.0419?

Let's Assume You Choose to Go Short:   Spread Betting Lower than NZ$1.0419
You Choose How Much to Risk, Selecting: £2 per point
So Now What?
  • You will lose £2 for each point (NZ$0.0001) AUD/NZD pushes above NZ$1.0419
  • You will make a profit of £2 for each point (NZ$0.0001) AUD/NZD moves below NZ$1.0419
When You Go Short With a Spread Bet Your Profits (or Losses) = (Opening Price - Closing Price) x stake
 
Example 3
AUD/NZD drops and the market is adjusted to NZ$1.0365 - NZ$1.0369. I.e. you would see:   1.0365   1.0369
Time to Take a Profit? You may opt to keep your trade open or close it in order to lock in your profit. For this example, you choose to settle your position and buy at NZ$1.0369.
Your Profits (or Losses) = (Opening Price - Closing Price) x stake
(NZ$1.0419 - NZ$1.0369) x £2 per point (£2 per NZ$0.0001)
NZ$0.0050 x £2 per point
50 points x £2 per point
Your Profits (or Losses) = £100 profit
 
Example 4
AUD/NZD moves higher and the financial spread betting market is revised and changes to NZ$1.0459 - NZ$1.0463, so you would see this on Financial Spreads:   1.0459   1.0463
Restrict the Loss?You could decide to keep your bet open or close it, i.e. close your trade and restrict your losses. In this example you choose to settle your trade and buy the market at NZ$1.0463.
Your Profits (or Losses) = (Opening Price - Closing Price) x stake
(NZ$1.0419 - NZ$1.0463) x £2 per point (£2 per NZ$0.0001)
-NZ$0.0044 x £2 per point
-44 points x £2 per point
Your Profits (or Losses) = -£88 loss

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

FinancialSpreads provides a free Demo Account where you are able to practice trading, analyse the charts, practice with new trading orders and test new ideas on markets including AUD/NZD.

The Demo Account isn't restricted to the above market; traders are also able to get experience using a large selection of commodities, currencies, indices and stocks and shares.



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