Guide to Euro/Australian Dollar Spread Betting

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Financial Spreads: Spread Betting and CFD Trading

Where Can I Spread Bet on EUR/AUD?

With FinancialSpreads clients can trade on a large variety of forex rates. E.g. EUR/AUD in addition to the euro/Swiss franc, dollar/yen and euro/pound.

Where Can I Access Live EUR/AUD Prices?

When trading with a FinancialSpreads account you can trade on more than a thousand real-time prices such as EUR/AUD and a wide variety of other foreign exchange, commodities, stocks and stock market indices.

Where Can I Get Live EUR/AUD Charts?

With FinancialSpreads investors can access a real-time charting package for EUR/AUD and over a thousand other markets.

Along with different display styles, the charting package comes with a variety of features:
Example FX market spread betting chart:

Forex Spread Betting Charts



How to Financial Spread Bet on EUR/AUD

For example, let's assume you log on to the Financial Spreads website and see the live quote is:

  EUR/AUD Rolling Spot Sell

1.4687
Buy

1.4689


Here's an example of how the market works:

MarketEUR/AUD Rolling Spot
The Spread Trading PriceA$1.4687 - A$1.4689
This MeansYou can speculate on the EUR/AUD Rolling Spot market to move:

  Spread Betting Higher than A$1.4689, or
  Spread Betting Lower than A$1.4687

This spread betting market is a 'Rolling' market which means that there is no settlement date. If you haven't closed your position and the trading session ends then your position will automatically roll over into the next trading session.

Note that if the trade is rolled over then you will normally either be credited or charged for overnight financing depending on whether you are betting on the market to decrease or increase. For additional details also see Rolling Spread Betting.
Traded UnitsTrades on the EUR/AUD market are priced in £x per point.

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

E.g. if EUR/AUD moves by A$0.0055 then you would lose or win 55 multiples of your stake.
Stake per UnitYou decide how much you would like to risk per point, e.g. £2 per point, £4 per point, £20 per point etc.
Simplified Trading ExerciseAs an example, if you chose a stake of £4 per point and EUR/AUD changes by A$0.0024 (24 points), you would win/lose £4 per point x 24 points = £96.


Trading Example - Going Long of EUR/AUD

Financial spread trading on the foreign exchange rate to increase

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

  Spread Betting Higher than A$1.4689? or
  Spread Betting Lower than A$1.4687?

Let's Assume You Want to Go Long   Spread Betting Higher than A$1.4689
You Decide Your Stake, Let's Say You Opt For £4 per point
So What Happens Now?
  • You make a profit of £4 for every point (A$0.0001) EUR/AUD moves above A$1.4689
  • Your trade loses £4 for each point (A$0.0001) EUR/AUD falls lower than A$1.4689
If You Are Betting on a Market to Rise Your P&L = (Closing Price - Opening Price) x stake
 
Trading Example 1
EUR/AUD climbs and the financial spread betting market is adjusted and moved to A$1.4713 - A$1.4715, i.e.   1.4713   1.4715
Lock in Your Profit? You could opt to keep your trade open or close it, i.e. close your spread bet to lock in a profit. In this example you opt to close your bet and sell at A$1.4713.
Your P&L = (Closing Price - Opening Price) x stake
(A$1.4713 - A$1.4689) x £4 per point (£4 per A$0.0001)
A$0.0024 x £4 per point
24 points x £4 per point
Your P&L = £96 profit
 
Trading Example 2
EUR/AUD goes lower and the spread trading market is revised and is set at A$1.4663 - A$1.4665:   1.4663   1.4665
Close and Limit the Loss? At this point, you can choose to let your bet run or close it in order to restrict your loss. In this instance you opt to close your bet by selling the market at A$1.4663.
Your P&L = (Closing Price - Opening Price) x stake
(A$1.4663 - A$1.4689) x £4 per point (£4 per A$0.0001)
-A$0.0026 x £4 per point
-26 points x £4 per point
Your P&L = -£104 loss


Worked Spread Trading Example - Taking a Short Position on EUR/AUD

Financial spread betting on the foreign exchange rate to go down

You Choose to Buy or Sell EUR/AUD to go:

  Spread Betting Higher than A$1.4689? or
  Spread Betting Lower than A$1.4687?

You Might Choose to Go Short   Spread Betting Lower than A$1.4687
You Choose Your Stake, Let's Say You Choose £5 per point
So Now What?
  • Your trade loses £5 for each point (A$0.0001) EUR/AUD pushes higher than A$1.4687
  • You make a profit of £5 for each point (A$0.0001) EUR/AUD goes lower than A$1.4687
When Speculating on a Market to Go Down Your P&L = (Opening Price - Closing Price) x stake
 
Trading Example 3
EUR/AUD drops and the spread betting market adjusts and moves to A$1.4658 - A$1.4660, i.e. on Financial Spreads you would see:   1.4658   1.4660
Time to Lock in Your Profit? You could choose to keep your bet open or close it in order to take your profit. For this example, you decide to settle your bet by buying at A$1.4660.
Your P&L = (Opening Price - Closing Price) x stake
(A$1.4687 - A$1.4660) x £5 per point (£5 per A$0.0001)
A$0.0027 x £5 per point
27 points x £5 per point
Your P&L = £135 profit
 
Trading Example 4
EUR/AUD moves higher and the market becomes A$1.4715 - A$1.4717, i.e. you would see:   1.4715   1.4717
Time to Restrict Your Loss?You may decide to leave your position open or close it, i.e. close your position to restrict your losses. For this example, you opt to settle your bet by buying the market at A$1.4717.
Your P&L = (Opening Price - Closing Price) x stake
(A$1.4687 - A$1.4717) x £5 per point (£5 per A$0.0001)
-A$0.0030 x £5 per point
-30 points x £5 per point
Your P&L = -£150 loss

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

FinancialSpreads.com offer a free Demo Account where you are able to try out trading ideas, try out CFD trading and spread betting, check live charts and practice with trading orders on markets including EUR/AUD.

The Financial Spreads Demo Account offers access to a wide array of markets such as stocks, index markets, commodities and forex rates.



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+44 (0) 203 301 0483
support@financialspreads.com

Also see:
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