Guide to Euro/Dollar Spread Betting

Support: +44 (0) 203 301 0483 | support@financialspreads.com
Financial Spreads: Spread Betting and CFD Trading

Losses can exceed deposits

Where Can I Spread Bet on EUR/USD?

When trading with a Financial Spreads account investors are able to spread bet on a variety of exchange rates. For example, investors can trade on EUR/USD but also the euro/sterling, euro/yen and euro/Swiss franc.

Where Can I Access Live EUR/USD Prices?

FinancialSpreads offers real time prices on more than a thousand spread trading and CFD markets such as EUR/USD and a wide range of other currencies, indices, equities and commodities prices.

Where Can I Get Live EUR/USD Charts?

With a Financial Spreads account clients can look at live candlestick charts for EUR/USD and numerous other markets.

As well as the various chart types, the package comes with a wide array of features like:
Sample FinancialSpreads forex market trading chart:

Forex Spread Betting Charts



How to Financial Spread Bet on EUR/USD

For example, let's suppose you sign into the Financial Spreads website and see the live price is:

  EUR/USD Rolling Spot Sell

1.11944
Buy

1.11951


Here's an example of how the market works...

Spread Trading MarketEUR/USD Rolling Spot
The Quote$1.11944 - $1.11951
This MeansYou can spread bet on the EUR/USD Rolling Spot market moving:

  Spread Betting Higher than $1.11951, or
  Spread Betting Lower than $1.11944

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

If the trade is rolled over then you will normally either receive or pay a small fee for overnight financing depending upon whether you are speculating on the market to decrease or increase. To learn more see Rolling Spread Betting.
Units TradedBets on the EUR/USD market are priced in £x per point.

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

E.g. if EUR/USD moves $0.00550 then you would win or lose 55 times your stake.
Stake Size per UnitYou decide how much you want to trade per point, e.g. £1 per point, £4 per point, £15 per point etc.
Short Staking ExerciseIf, as an example, your stake is £3 per point and EUR/USD moves by $0.00290 (29 points), you would lose or gain £3 per point x 29 points = £87.


Spread Trading Example - Buying EUR/USD

Spread trading on the forex pair to go higher

You Now Work Out Whether to Buy or Sell EUR/USD going:

  Spread Betting Higher than $1.11951? or
  Spread Betting Lower than $1.11944?

You Might Want to Go Long   Spread Betting Higher than $1.11951
You Choose How Much to Risk, Let's Assume You Select £4 per point
So Now What Happens?
  • You make a gain of £4 for every point ($0.00010) EUR/USD moves above $1.11951
  • You will make a loss of £4 for each point ($0.00010) EUR/USD goes below $1.11951
If You Go Long With a Spread Bet Your Profits/Losses = (Settlement Price - Opening Price) x stake
 
Trading Situation 1
EUR/USD rises and the market is revised to $1.12343 - $1.12350. Therefore you'd see:   1.12343   1.12350
Close and Take a Profit? At this point, you may choose to leave your spread bet open or close it in order to lock in your profit. For this example, you opt to close your trade by selling at $1.12343.
Your Profits/Losses = (Settlement Price - Opening Price) x stake
($1.12343 - $1.11951) x £4 per point (£4 per $0.00010)
$0.00392 x £4 per point
39.2 points x £4 per point
Your Profits/Losses = £156.80 profit
 
Trading Situation 2
EUR/USD pushes lower and the spread betting market is revised and is set at $1.11531 - $1.11538, i.e. you would see:   1.11531   1.11538
Restrict the Loss? At this point, you may choose to keep your bet open or close it and limit your loss. In this example you choose to settle your bet by selling the market at $1.11531.
Your Profits/Losses = (Settlement Price - Opening Price) x stake
($1.11531 - $1.11951) x £4 per point (£4 per $0.00010)
-$0.00420 x £4 per point
-42 points x £4 per point
Your Profits/Losses = -£168.00 loss


Spread Betting Example - Going Short of EUR/USD

Financial spread betting on the forex pair to go lower

You Now Decide Whether to Go Long or Short EUR/USD to move:

  Spread Betting Higher than $1.11951? or
  Spread Betting Lower than $1.11944?

You Might Want to Sell   Spread Betting Lower than $1.11944
You Decide How Much to Risk, Let's Assume You Opt For £3 per point
So What Next?
  • You will make a loss of £3 for each point ($0.00010) EUR/USD goes above $1.11944
  • You make a gain of £3 for each point ($0.00010) EUR/USD decreases lower than $1.11944
When Betting on a Market to Go Down Your Profits/Losses = (Opening Price - Settlement Price) x stake
 
Trading Situation 3
EUR/USD moves lower and the financial spread betting market moves to $1.11486 - $1.11493, i.e.   1.11486   1.11493
Time to Lock in Your Profit? You can opt to keep your spread bet open or close it, i.e. close your spread bet to lock in your profit. For this example, you choose to close your position and buy the market at $1.11493.
Your Profits/Losses = (Opening Price - Settlement Price) x stake
($1.11944 - $1.11493) x £3 per point (£3 per $0.00010)
$0.00451 x £3 per point
45.1 points x £3 per point
Your Profits/Losses = £135.30 profit
 
Trading Situation 4
EUR/USD pushes higher and the spread trading market adjusts and moves to $1.12420 - $1.12427, i.e. on Financial Spreads you would see:   1.12420   1.12427
Close and Restrict Your Loss?At this point, you may opt to keep your trade open or close it, i.e. close your position to restrict your loss. In this case you choose to settle your bet by buying at $1.12427.
Your Profits/Losses = (Opening Price - Settlement Price) x stake
($1.11944 - $1.12427) x £3 per point (£3 per $0.00010)
-$0.00483 x £3 per point
-48.3 points x £3 per point
Your Profits/Losses = -£144.90 loss

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

FinancialSpreads provides a free Practice Account which means you can check the live charts, test new trading ideas, practice trading and try out trading orders etc. on CFD and spread betting markets like EUR/USD.

The Practice Account comes with a large selection of markets including commodities, currencies, stock market indices and equities.


Euro Commitments of Traders Report - 7 Feb 2017


Futures Only Positions, CME , Code 99741, (Contracts of €125,000)

Reporting Firms Non-Reportable Positions
Non-Commercial
Commercial Total Reportable
 
Commitments Open Interest Commitments
Long Short Spreads Long Short Long Short Long Short
126,708 171,659 8,328 220,490 171,635 355,526 351,622 409,178 53,652 57,556
 
Changes from 31 Jan 2017 Change in Open Interest Changes from
Long Short Spreads Long Short Long Short Long Short
1,019 257 -755 2,216 6,639 2,480 6,141 3,637 1,157 -2,504
 
Percent of Open Interest for Each Category of Trader
Long Short Spreads Long Short Long Short   Long Short
31.0% 42.0% 2.0% 53.9% 41.9% 86.9% 85.9%   13.1% 14.1%
 
Number of Traders in Each Category Total Traders  
Long Short Spreads Long Short Long Short    
66 84 33 56 60 136 164 234    
 
Long/Short Commitments Ratios   Long/Short Ratio
Ratio   Ratio Ratio   Ratio
1:1.4   1.3:1 1:1   1:1.1
 
Net Commitment Change  
762  



Contact Customer Support

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

Also see: