Guide to Euro/Yen Spread Betting

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Financial Spreads: Spread Betting and CFD Trading

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Where Can I Spread Bet on EUR/JPY?

When trading with FinancialSpreads investors can take a position on an array of currencies. These include EUR/JPY as well as the GBP/USD, USD/JPY and EUR/CHF.

Where Can I Access Live EUR/JPY Prices?

FinancialSpreads.com offers clients real time pricing on more than 1,000 spread betting and CFD markets such as EUR/JPY and a wide array of other currencies, shares, commodities and indices markets.

Where Can I Get Live EUR/JPY Charts?

When using a FinancialSpreads account investors can use up-to-the-minute candlestick charts for EUR/JPY and numerous other spread trading and CFD markets.

To aid your technical analysis, the charting package comes with a wide array of advanced options that includes:
Example currency trading spread trading chart:

Forex Spread Betting Charts



A Guide to Spread Betting on EUR/JPY

Let's assume that you log on to the Financial Spreads website and the platform is showing a quote of:

  EUR/JPY Rolling Spot Sell

135.599
Buy

135.609


Here's a guide to how the market works.

The MarketEUR/JPY Rolling Spot
The Quote¥135.599 - ¥135.609
How the Trade WorksYou can speculate on the EUR/JPY Rolling Spot market to go:

  Spread Betting Above ¥135.609, or
  Spread Betting Below ¥135.599

This is a 'Rolling' spread betting market and so there is no settlement date. If you decide not to close your position and the session ends then your position will roll over to the next session.

Note that if a trade is rolled over then you will normally either receive or pay interest for overnight financing based on whether you are betting on the market to fall or rise. For more details also see Rolling Spread Betting.
Traded UnitsFinancial spread bets on the EUR/JPY market are priced in £x per point.

Where a point is ¥0.010 of the currency pair's price movement.

E.g. if EUR/JPY changes by ¥0.300 then you would win/lose 30 times your stake.
Stake (Trade Size)You decide how much you want to stake per point, e.g. £2 per point, £4 per point, £15 per point etc.
Short Staking ExerciseWith that in mind, if you have a stake of £5 per point and EUR/JPY moves ¥0.270 (27 points), you would gain or lose £5 per point x 27 points = £135.


Worked Spread Trading Example - Going Long of EUR/JPY

Spread trading on the forex market to go higher

You Now Select Whether to Go Long or Short EUR/JPY going:

  Spread Betting Above ¥135.609? or
  Spread Betting Below ¥135.599?

Let's Say You Choose to Buy   Spread Betting Above ¥135.609
You Decide How Much to Risk, Let's Say You Opt For £3 per point
Now What Happens?
  • You make a gain of £3 for each point (¥0.010) EUR/JPY goes above ¥135.609
  • Your spread bet loses £3 for every point (¥0.010) EUR/JPY moves lower than ¥135.609
When You Buy a Spread Bet Your Trading Profits/Losses = (Closing Price - Opening Price) x stake
 
Situation 1
EUR/JPY increases and the financial spread betting market is revised and changes to ¥136.280 - ¥136.290. Therefore Financial Spreads would show:   136.280   136.290
Take Your Profit? You could decide to let your spread bet run or close it, i.e. close your position to lock in a profit. For this example, you opt to settle your position and sell at ¥136.280.
Your Trading Profits/Losses = (Closing Price - Opening Price) x stake
(¥136.280 - ¥135.609) x £3 per point (£3 per ¥0.010)
¥0.671 x £3 per point
67.1 points x £3 per point
Your Trading Profits/Losses = £201.30 profit
 
Situation 2
EUR/JPY drops and the spread trading market is revised to ¥134.999 - ¥135.009:   134.999   135.009
Limit the Loss? At this point, you may decide to leave your position open or close it, i.e. close your trade and restrict your loss. In this case you decide to close your position by selling the market at ¥134.999.
Your Trading Profits/Losses = (Closing Price - Opening Price) x stake
(¥134.999 - ¥135.609) x £3 per point (£3 per ¥0.010)
-¥0.610 x £3 per point
-61 points x £3 per point
Your Trading Profits/Losses = -£183.00 loss


Worked Spread Betting Example - Going Short of EUR/JPY

Spread betting on the forex market to go down in value

You Choose to Go Long or Short EUR/JPY to move:

  Spread Betting Above ¥135.609? or
  Spread Betting Below ¥135.599?

Let's Assume You Choose to Sell   Spread Betting Below ¥135.599
You Select How Much to Risk, Let's Say You Select £2 per point
So What Next?
  • Your spread bet loses £2 for every point (¥0.010) EUR/JPY increases above ¥135.599
  • You make a gain of £2 for every point (¥0.010) EUR/JPY pushes lower than ¥135.599
If You Are Speculating on a Market to Fall Your Trading Profits/Losses = (Opening Price - Closing Price) x stake
 
Situation 3
EUR/JPY slips and the spread betting market is adjusted to ¥134.750 - ¥134.760, therefore you would see this on Financial Spreads:   134.750   134.760
Lock in a Profit? At this point, you may decide to let your position run or close it for a profit. In this example you choose to settle your position by buying the market at ¥134.760.
Your Trading Profits/Losses = (Opening Price - Closing Price) x stake
(¥135.599 - ¥134.760) x £2 per point (£2 per ¥0.010)
¥0.839 x £2 per point
83.9 points x £2 per point
Your Trading Profits/Losses = £167.80 profit
 
Situation 4
EUR/JPY rises and the market is adjusted and moved to ¥136.352 - ¥136.362, therefore you would see:   136.352   136.362
Time to Limit Your Loss?At this point, you could choose to let your bet run or close it, i.e. close your spread bet and limit your loss. For this example, you decide to close your bet and buy at ¥136.362.
Your Trading Profits/Losses = (Opening Price - Closing Price) x stake
(¥135.599 - ¥136.362) x £2 per point (£2 per ¥0.010)
-¥0.763 x £2 per point
-76.3 points x £2 per point
Your Trading Profits/Losses = -£152.60 loss

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

FinancialSpreads provides investors with the option of trying out new trading theories by using a free Practice Account, demo markets include EUR/JPY.

The Financial Spreads Demo Account is not restricted to the above market; traders can try trading using a wide array of commodities, FX rates, stock market indices and stocks.

Open a Free Demo Account



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