Guide to Euro/Sterling Spread Betting

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Financial Spreads: Spread Betting and CFD Trading

Losses can exceed deposits

Where Can I Spread Bet on EUR/GBP?

Financial Spreads provides clients with a wide range of currency markets including EUR/GBP but also the EUR/USD, USD/JPY and EUR/CHF.

Where Can I Access Live EUR/GBP Prices?

Using a Financial Spreads account investors can speculate on 1,000+ live prices including EUR/GBP and a variety of other currencies, equities, commodities and stock market indices.

Where Can I Get Live EUR/GBP Charts?

When trading with Financial Spreads clients can use professional level charts for EUR/GBP and more than 1,000 other spread betting and CFD markets.

Along with several chart types, the charting package also has a wide variety of features:
Example currency market trading chart:

Forex Spread Betting Charts



A Guide to Spread Betting on EUR/GBP

As an example, let's imagine that you log on to FinancialSpreads and see something like:

  EUR/GBP Rolling Spot Sell

0.74034
Buy

0.74042


Here is an example of how the market works.

Spread Betting Market:EUR/GBP Rolling Spot
Spread:£0.74034 - £0.74042
How the Spread Works:You can bet on the EUR/GBP Rolling Spot market moving:

  Spread Betting Higher than £0.74042, or
  Spread Betting Lower than £0.74034

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

Note: if a trade rolls over then you will either pay or receive a small fee for overnight financing depending upon the direction of your position. For additional information see Rolling Spread Bets.
Units (Points) Traded:Spread trades on the EUR/GBP market are made in £x per point.

Where a point is £0.00010 of the currency market's price movement.

E.g. if EUR/GBP moves by £0.00350 then you would gain or lose 35 multiples of your stake.
Trade Size:You work out how much you would like to stake per point, e.g. £1 per point, £4 per point, £15 per point etc.
Simplified Trading Example:As an example, if you have a stake of £5 per point and EUR/GBP changes by £0.00340 (34 points), you would win/lose £5 per point x 34 points = £170.


Worked Trading Example - Taking a Bullish View of EUR/GBP

Financial spread trading on the forex market to increase

You Now Work Out Whether to Go Long or Short: EUR/GBP to move:

  Spread Betting Higher than £0.74042? or
  Spread Betting Lower than £0.74034?

You Might Decide to Buy:   Spread Betting Higher than £0.74042
You Decide Your Stake Size, Choosing: £2 per point
What Next?
  • You will win £2 for every point (£0.00010) EUR/GBP goes higher than £0.74042
  • Your trade loses £2 for each point (£0.00010) EUR/GBP decreases below £0.74042
When Betting on a Market to Go Up Your Trading Profits (or Losses) = (Closing Price - Initial Price) x stake
 
Situation 1
EUR/GBP goes higher and the spread trading market moves to £0.74523 - £0.74531, i.e. you'd see:   0.74523   0.74531
Time to Lock in Your Profit? You may choose to leave your position open or close it, i.e. close your position to lock in a profit. In this instance you decide to settle your bet and sell the market at £0.74523.
Your Trading Profits (or Losses) = (Closing Price - Initial Price) x stake
(£0.74523 - £0.74042) x £2 per point (£2 per £0.00010)
£0.00481 x £2 per point
48.1 points x £2 per point
Your Trading Profits (or Losses) = £96.20 profit
 
Situation 2
EUR/GBP falls and the financial spread betting market is revised and changes to £0.73635 - £0.73643, therefore Financial Spreads would show:   0.73635   0.73643
Time to Restrict the Loss? You could choose to keep your bet open or close it, i.e. close your spread bet and limit your loss. In this example you choose to close your bet by selling the market at £0.73635.
Your Trading Profits (or Losses) = (Closing Price - Initial Price) x stake
(£0.73635 - £0.74042) x £2 per point (£2 per £0.00010)
-£0.00407 x £2 per point
-40.7 points x £2 per point
Your Trading Profits (or Losses) = -£81.40 loss


Trading Example - Selling EUR/GBP

Spread betting on the forex market to go down

You Now Choose to Buy or Sell: EUR/GBP to push:

  Spread Betting Higher than £0.74042? or
  Spread Betting Lower than £0.74034?

Let's Say You Go Short:   Spread Betting Lower than £0.74034
You Choose Your Stake Size, Opting for: £3 per point
So What Happens Next?
  • Your trade loses £3 for each point (£0.00010) EUR/GBP moves above £0.74034
  • You will win £3 for each point (£0.00010) EUR/GBP falls below £0.74034
When Spread Betting on a Market to Go Down Your Trading Profits (or Losses) = (Initial Price - Closing Price) x stake
 
Situation 3
EUR/GBP decreases and the spread betting market is adjusted to £0.73617 - £0.73625, so you would see this on Financial Spreads:   0.73617   0.73625
Lock in Your Profit? At this point, you can choose to leave your bet open or close it and lock in your profit. For this example, you choose to close your bet by buying the market at £0.73625.
Your Trading Profits (or Losses) = (Initial Price - Closing Price) x stake
(£0.74034 - £0.73625) x £3 per point (£3 per £0.00010)
£0.00409 x £3 per point
40.9 points x £3 per point
Your Trading Profits (or Losses) = £122.70 profit
 
Situation 4
EUR/GBP climbs and the market is revised and is set at £0.74372 - £0.74380, i.e. the market moves to:   0.74372   0.74380
Time to Limit the Loss?At this point, you could opt to leave your spread bet open or close it, i.e. close your trade and restrict your loss. In this case you choose to close your trade by buying at £0.74380.
Your Trading Profits (or Losses) = (Initial Price - Closing Price) x stake
(£0.74034 - £0.74380) x £3 per point (£3 per £0.00010)
-£0.00346 x £3 per point
-34.6 points x £3 per point
Your Trading Profits (or Losses) = -£103.80 loss

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

FinancialSpreads.com provides you with the chance to test new trading ideas by using a Demo Account on markets such as EUR/GBP.

The Financial Spreads Demo Account offers a wide array of markets such as equities, stock market indices, commodity markets and FX pairs.

Open a Demo Account


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support@financialspreads.com

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