Guide to Australian Dollar/US Dollar Spread Betting

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Financial Spreads: Spread Betting and CFD Trading

Where Can I Spread Bet on AUD/USD?

With a Financial Spreads account investors can take a position on a large range of currency pairs. Markets include AUD/USD in addition to the USD/JPY, EUR/CHF and EUR/GBP.

Where Can I Access Live AUD/USD Prices?

FinancialSpreads.com provides investors with real-time pricing on 1,000+ markets including AUD/USD and a wide variety of other currencies, commodities, indices and stocks prices.

Where Can I Get Live AUD/USD Charts?

When using a Financial Spreads account you can look at professional level charts for AUD/USD and more than a thousand other markets.

Along with multiple chart types, the package has a wide variety of options:
Sample Financial Spreads FX market trading chart:

Forex Spread Betting Charts



A Guide to Financial Spread Betting on AUD/USD

As an example, let's assume that you look at the FinancialSpreads website and are presented with something like:

  AUD/USD Rolling Spot Sell

0.77590
Buy

0.77598


Here is a brief example of how it works...

Spread Trading Market:AUD/USD Rolling Spot
Spread Betting Quote:$0.77590 - $0.77598
This Means:You can spread bet on the AUD/USD Rolling Spot market to go:

  Spread Betting Higher than $0.77598, or
  Spread Betting Lower than $0.77590

This is a 'Rolling' spread bet and so there is no closing date. If you haven't closed your position and the session ends then your trade will automatically roll over to the next session.

Note: if a trade does roll over then you will either have to pay or receive interest for overnight financing based on whether you are speculating on the market to increase or decrease. For additional details also see Rolling Spread Bets.
Trading Units:Trades on the AUD/USD market are priced in £x per point.

Where a point is $0.00010 of the currency pair's price movement.

E.g. if AUD/USD changes by $0.00300 then you would win or lose 30 multiples of your stake.
Trade Size:You choose how much you would like to risk per point, e.g. £1 per point, £4 per point, £15 per point etc.
Quick Staking Exercise:With that in mind, if your stake was £2 per point and AUD/USD moves by $0.00290 (29 points), you would lose or gain £2 per point x 29 points = £58.


Trading Example - Buying AUD/USD

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

You Consider Whether to Go Long or Short: AUD/USD to push:

  Spread Betting Higher than $0.77598? or
  Spread Betting Lower than $0.77590?

You Might Decide to Buy:   Spread Betting Higher than $0.77598
You Select Your Stake, Choosing: £3 per point
So What Next?
  • You will make a profit of £3 for each point ($0.00010) AUD/USD moves above $0.77598
  • You will make a loss of £3 for every point ($0.00010) AUD/USD goes below $0.77598
If You Are Speculating on a Market to Increase Your Profits (or Losses) = (Final Price - Opening Price) x stake
 
Example 1
AUD/USD goes higher and the market is adjusted to $0.77955 - $0.77963. Therefore you would see:   0.77955   0.77963
Close for a Profit? You could choose to keep your bet open or close it in order to take a profit. In this instance you decide to close your position and sell at $0.77955.
Your Profits (or Losses) = (Final Price - Opening Price) x stake
($0.77955 - $0.77598) x £3 per point (£3 per $0.00010)
$0.00357 x £3 per point
35.7 points x £3 per point
Your Profits (or Losses) = £107.10 profit
 
Example 2
AUD/USD moves lower and the financial spread betting market is revised and moved to $0.77202 - $0.77210. So you would see this on Financial Spreads:   0.77202   0.77210
Time to Limit the Loss? You may opt to let your position run or close it and restrict your loss. In this instance you opt to settle your position by selling the market at $0.77202.
Your Profits (or Losses) = (Final Price - Opening Price) x stake
($0.77202 - $0.77598) x £3 per point (£3 per $0.00010)
-$0.00396 x £3 per point
-39.6 points x £3 per point
Your Profits (or Losses) = -£118.80 loss


Spread Betting Example - Taking a Bearish View of AUD/USD

Financial spread trading on the forex market to decrease

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

  Spread Betting Higher than $0.77598? or
  Spread Betting Lower than $0.77590?

You Might Want to Sell:   Spread Betting Lower than $0.77590
You Choose Your Stake Size, Let's Say You Opt For: £2 per point
What Happens Next?
  • You will make a loss of £2 for every point ($0.00010) AUD/USD goes above $0.77590
  • You will make a profit of £2 for every point ($0.00010) AUD/USD moves below $0.77590
When Selling a Spread Bet Your Profits (or Losses) = (Opening Price - Final Price) x stake
 
Example 3
AUD/USD pushes lower and the spread betting market moves to $0.77011 - $0.77019. So you'd see this on Financial Spreads:   0.77011   0.77019
Lock in Your Profit? You could decide to keep your trade open or close it, i.e. close your spread bet to lock in your profit. For this example, you choose to settle your trade and buy the market at $0.77019.
Your Profits (or Losses) = (Opening Price - Final Price) x stake
($0.77590 - $0.77019) x £2 per point (£2 per $0.00010)
$0.00571 x £2 per point
57.1 points x £2 per point
Your Profits (or Losses) = £114.20 profit
 
Example 4
AUD/USD climbs and the spread trading market is moved to $0.78215 - $0.78223, so you would see this on Financial Spreads:   0.78215   0.78223
Close and Restrict Your Loss?You could choose to leave your bet open or close it and limit your losses. In this example you decide to settle your bet and buy at $0.78223.
Your Profits (or Losses) = (Opening Price - Final Price) x stake
($0.77590 - $0.78223) x £2 per point (£2 per $0.00010)
-$0.00633 x £2 per point
-63.3 points x £2 per point
Your Profits (or Losses) = -£126.60 loss

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

FinancialSpreads.com provide a free Demo Account where you can apply trading orders, access candlestick charts, practice trading and test new trading ideas etc. on markets like AUD/USD.

The Financial Spreads Demo Account is not limited to a small selection of markets; you are also able to gain experience on a variety of index markets, forex pairs, commodities and stocks.

Open a Free CFD Trading / Spread Betting Demo Account


Australian Dollar Commitments of Traders Report - 15 May 2018


Futures Only Positions, CME , Code 232741, (Contracts of A$100,000)

Reporting Firms Non-Reportable Positions
Non-Commercial
Commercial Total Reportable
 
Commitments Open Interest Commitments
Long Short Spreads Long Short Long Short Long Short
72,514 95,620 2,679 79,458 35,162 154,651 133,461 173,515 18,864 40,054
 
Changes from 8 May 2018 Change in Open Interest Changes from
Long Short Spreads Long Short Long Short Long Short
9,763 16,103 -970 7,737 -3,051 16,530 12,082 13,291 -3,239 1,209
 
Percent of Open Interest for Each Category of Trader
Long Short Spreads Long Short Long Short   Long Short
41.8% 55.1% 1.5% 45.8% 20.3% 89.1% 76.9%   10.9% 23.1%
 
Number of Traders in Each Category Total Traders  
Long Short Spreads Long Short Long Short    
20 39 15 17 20 44 67 89    
 
Long/Short Commitments Ratios   Long/Short Ratio
Ratio   Ratio Ratio   Ratio
1:1.3   2.3:1 1.2:1   1:2.1
 
Net Commitment Change  
-6,340  



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