Guide to Canadian Dollar/Yen Spread Betting

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Financial Spreads: Spread Betting and CFD Trading

Where Can I Spread Bet on CAD/JPY?

A FinancialSpreads account provides a wide array of FX markets such as CAD/JPY as well as the dollar/yen, euro/Swiss franc and euro/dollar.

Where Can I Access Live CAD/JPY Prices?

With Financial Spreads investors can speculate on over 1,000 real-time CFD trading and spread betting prices like CAD/JPY and a wide variety of other forex, commodities, shares and stock markets.

Where Can I Get Live CAD/JPY Charts?

Using a Financial Spreads account investors can make use of real time candlestick charts for CAD/JPY and more than 1,000 other CFD and spread betting markets.

Along with multiple chart types, the charting package comes with a large variety of advanced options:
Example FX chart:

Forex Spread Betting Charts



How to Spread Bet on CAD/JPY

As an example, let's suppose that you log on to FinancialSpreads and see a price of:

  CAD/JPY Rolling Spot Sell

95.33
Buy

95.36


This is an example of how the market works

The Spread Betting Market:CAD/JPY Rolling Spot
Spread Trading Price:¥95.33 - ¥95.36
How the Market Works:You can speculate on the CAD/JPY Rolling Spot market going:

  Spread Betting Above ¥95.36, or
  Spread Betting Below ¥95.33

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

If the trade is rolled over then you will normally either pay or receive a small fee for overnight financing based on whether you are speculating on the market to increase or decrease. For further information see Rolling Spread Betting.
Traded Units:Spread trades on the CAD/JPY market are made in £x per point.

Where a point is ¥0.01 of the FX pair's price movement.

E.g. if CAD/JPY moves by ¥0.30 then you would win/lose 30 times your stake.
Trade Size:You work out how much you are going to trade per point, e.g. £1 per point, £8 per point, £15 per point etc.
Brief Staking Example:With that in mind, if you chose a stake of £2 per point and CAD/JPY changes by ¥0.32 (32 points), you would gain or lose £2 per point x 32 points = £64.


Worked Spread Betting Example - Buying CAD/JPY

Financial spread trading on the currency pair to rise

You Now Select Whether to Go Long or Short: CAD/JPY to move:

  Spread Betting Above ¥95.36? or
  Spread Betting Below ¥95.33?

Let's Say You Want to Buy:   Spread Betting Above ¥95.36
You Choose Your Stake, Let's Assume You Opt For: £4 per point
So What Happens Now?
  • You gain £4 for every point (¥0.01) CAD/JPY rises higher than ¥95.36
  • You lose £4 for each point (¥0.01) CAD/JPY goes lower than ¥95.36
If You Go Long With a Spread Bet Your P/L = (Closing Price - Opening Price) x stake
 
Situation 1
CAD/JPY increases and the spread betting market is revised and is set at ¥95.88 - ¥95.91, i.e. on Financial Spreads you would see:   95.88   95.91
Close and Take a Profit? At this point, you may decide to let your trade run or close it, i.e. close your trade to lock in your profit. In this instance you opt to close your position and sell the market at ¥95.88.
Your P/L = (Closing Price - Opening Price) x stake
(¥95.88 - ¥95.36) x £4 per point (£4 per ¥0.01)
¥0.52 x £4 per point
52 points x £4 per point
Your P/L = £208 profit
 
Situation 2
CAD/JPY falls and the financial spread betting market is adjusted to ¥94.88 - ¥94.91. So you'd see this on Financial Spreads:   94.88   94.91
Limit the Loss? At this point, you could opt to leave your bet open or close it, i.e. close your spread bet and limit your losses. For this example, you choose to close your bet and sell at ¥94.88.
Your P/L = (Closing Price - Opening Price) x stake
(¥94.88 - ¥95.36) x £4 per point (£4 per ¥0.01)
-¥0.48 x £4 per point
-48 points x £4 per point
Your P/L = -£192 loss


Trading Example - Taking a Short Position on CAD/JPY

Spread trading on the currency pair to fall in value

You Select Whether to Buy or Sell: CAD/JPY to push:

  Spread Betting Above ¥95.36? or
  Spread Betting Below ¥95.33?

Let's Assume You Want to Sell:   Spread Betting Below ¥95.33
You Choose How Much to Risk, Let's Assume You Choose: £5 per point
Now What?
  • You lose £5 for each point (¥0.01) CAD/JPY pushes higher than ¥95.33
  • You gain £5 for each point (¥0.01) CAD/JPY goes below ¥95.33
When Going Short of a Market Your P/L = (Opening Price - Closing Price) x stake
 
Situation 3
CAD/JPY pushes lower and the spread trading market is moved to ¥94.93 - ¥94.96, therefore you would see:   94.93   94.96
Time to Take a Profit? At this point, you could opt to let your position run or close it, i.e. close your trade for a profit. For this example, you opt to close your trade and buy the market at ¥94.96.
Your P/L = (Opening Price - Closing Price) x stake
(¥95.33 - ¥94.96) x £5 per point (£5 per ¥0.01)
¥0.37 x £5 per point
37 points x £5 per point
Your P/L = £185 profit
 
Situation 4
CAD/JPY goes higher and the market is revised to ¥95.64 - ¥95.67, so you'd see:   95.64   95.67
Time to Limit Your Loss?At this point, you could opt to let your bet run or close it, i.e. close your trade and restrict your loss. In this instance you opt to close your bet by buying at ¥95.67.
Your P/L = (Opening Price - Closing Price) x stake
(¥95.33 - ¥95.67) x £5 per point (£5 per ¥0.01)
-¥0.34 x £5 per point
-34 points x £5 per point
Your P/L = -£170 loss

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

FinancialSpreads.com provide a free Practice Account which allows investors to practice spread betting and CFD trading, try out new trading ideas, review the live charts and practice with trading orders on markets including CAD/JPY.

The Practice Account doesn't just cover the market above; traders can also gain experience across a variety of index markets, forex rates, commodities and equities.



Contact Customer Support

+44 (0) 203 301 0483
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.