Guide to Swiss Franc/Yen Spread Betting

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Financial Spreads: Spread Betting and CFD Trading

Where Can I Spread Bet on CHF/JPY?

With Financial Spreads investors are able to speculate on a wide range of FX pairs. For example, you can trade on CHF/JPY in addition to the pound/dollar, euro/dollar and euro/Swiss franc.

Where Can I Access Live CHF/JPY Prices?

FinancialSpreads.com offers real-time prices on over 1,000 CFD and financial spread betting markets such as CHF/JPY and a variety of other FX, commodities, equities and stock market indices.

Where Can I Get Live CHF/JPY Charts?

With Financial Spreads you are able to access up-to-the-minute trading charts for CHF/JPY and more than a thousand other CFD and spread trading markets.

As well as several chart types, the package also comes with a range of benefits. These include:
Example forex trading trading chart:

Forex Spread Betting Charts



A Guide to Spread Betting on CHF/JPY

As an example, let's assume that you go on the FinancialSpreads site and the current price is:

  CHF/JPY Rolling Spot Sell

127.94
Buy

127.96


Here is a brief example of how the market works.

The Market:CHF/JPY Rolling Spot
The Spread Betting Quote:¥127.94 - ¥127.96
What This Means:You can take a position on the CHF/JPY Rolling Spot market moving:

  Spread Betting Higher than ¥127.96, or
  Spread Betting Lower than ¥127.94

This is a 'Rolling' spread bet which means that there is no expiry date for this trade. If you haven't closed your trade and the session ends then your trade will automatically roll over to the next trading session.

Note: if the trade is rolled over then you will normally either receive or be charged interest for overnight financing depending on whether you are betting on the market to move lower or higher. For more details also see Rolling Spread Bets.
Units (Points) Traded:Trades on the CHF/JPY market are priced in £x per point.

Where a point is ¥0.01 of the forex market's price movement.

E.g. if CHF/JPY moves ¥0.50 then you would lose or gain 50 multiples of your stake.
Trade Size:You choose how much you are going to trade per point, e.g. £1 per point, £8 per point, £20 per point etc.
Simplified Trading Exercise:For example, if you went with a stake of £3 per point and CHF/JPY moves by ¥0.21 (21 points), you would lose or win £3 per point x 21 points = £63.


Spread Betting Example - Taking a Bullish View of CHF/JPY

Financial spread trading on the currency rate to go higher

You Now Consider Whether to Go Long or Short: CHF/JPY to move:

  Spread Betting Higher than ¥127.96? or
  Spread Betting Lower than ¥127.94?

You Might Decide to Buy:   Spread Betting Higher than ¥127.96
You Choose How Much to Risk, Selecting: £1 per point
What Now?
  • You gain £1 for each point (¥0.01) CHF/JPY moves higher than ¥127.96
  • Your spread bet loses £1 for every point (¥0.01) CHF/JPY pushes below ¥127.96
When Spread Betting on a Market to Increase Your P&L = (Settlement Price - Opening Price) x stake
 
Situation 1
CHF/JPY rises and the spread trading market is revised and changes to ¥129.34 - ¥129.36. I.e. you'd see:   129.34   129.36
Close for a Profit? You may choose to leave your bet open or close it and lock in a profit. In this example you decide to settle your position and sell the market at ¥129.34.
Your P&L = (Settlement Price - Opening Price) x stake
(¥129.34 - ¥127.96) x £1 per point (£1 per ¥0.01)
¥1.38 x £1 per point
138 points x £1 per point
Your P&L = £138 profit
 
Situation 2
CHF/JPY slips and the financial spread betting market changes to ¥126.42 - ¥126.44, so you'd see:   126.42   126.44
Close and Limit Your Loss? You can opt to keep your position open or close it in order to restrict your losses. For this example, you opt to settle your bet and sell at ¥126.42.
Your P&L = (Settlement Price - Opening Price) x stake
(¥126.42 - ¥127.96) x £1 per point (£1 per ¥0.01)
-¥1.54 x £1 per point
-154 points x £1 per point
Your P&L = -£154 loss


Worked Spread Betting Example - Taking a Short Position on CHF/JPY

Financial spread betting on the currency rate to move lower

You Now Choose to Buy or Sell: CHF/JPY going:

  Spread Betting Higher than ¥127.96? or
  Spread Betting Lower than ¥127.94?

You Might Choose to Sell:   Spread Betting Lower than ¥127.94
You Choose Your Stake Size, Let's Say You Opt For: £2 per point
What Happens Next?
  • Your spread bet loses £2 for every point (¥0.01) CHF/JPY rises above ¥127.94
  • You gain £2 for every point (¥0.01) CHF/JPY decreases lower than ¥127.94
If You Are Betting on a Market to Go Down Your P&L = (Opening Price - Settlement Price) x stake
 
Situation 3
CHF/JPY drops and the spread betting market is revised and moved to ¥127.09 - ¥127.11, so you would see:   127.09   127.11
Take Your Profit? At this point, you could opt to leave your spread bet open or close it in order to lock in your profit. For this example, you choose to settle your position by buying at ¥127.11.
Your P&L = (Opening Price - Settlement Price) x stake
(¥127.94 - ¥127.11) x £2 per point (£2 per ¥0.01)
¥0.83 x £2 per point
83 points x £2 per point
Your P&L = £166 profit
 
Situation 4
CHF/JPY increases and the market is revised and is set at ¥128.84 - ¥128.86. Therefore you'd see:   128.84   128.86
Restrict the Loss?At this point, you may choose to let your spread bet run or close it, i.e. close your spread bet to restrict your losses. In this instance you choose to settle your trade by buying the market at ¥128.86.
Your P&L = (Opening Price - Settlement Price) x stake
(¥127.94 - ¥128.86) x £2 per point (£2 per ¥0.01)
-¥0.92 x £2 per point
-92 points x £2 per point
Your P&L = -£184 loss

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

FinancialSpreads offer a free Practice Account where investors can practice with new trading orders, analyse the real-time charts, try out trading ideas and practice spread betting and CFD trading on CFD and spread trading markets like CHF/JPY.

The Demo Account isn't limited to the market above; investors are also able to gain trading experience with a wide array of FX rates, commodity markets, shares and indices.



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support@financialspreads.com

Also see:
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