Guide to Euro/South African Rand Spread Betting

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Financial Spreads: Spread Betting and CFD Trading

Where Can I Spread Bet on EUR/ZAR?

When trading with Financial Spreads investors are able to speculate on a range of currency pairs, for example you can trade on EUR/ZAR as well as the euro/sterling, euro/dollar and Australian dollar/US dollar.

Where Can I Access Live EUR/ZAR Prices?

When trading with Financial Spreads investors can speculate on more than a thousand live CFD trading and spread betting prices including markets like EUR/ZAR and a wide array of other forex, commodities, equities and stock markets.

Where Can I Get Live EUR/ZAR Charts?

Using a FinancialSpreads account clients can use up-to-the-minute candlestick charts for EUR/ZAR and over 1,000 other markets.

The charts have a large range of features. These include:
Example FinancialSpreads FX market candlestick chart:

Forex Spread Betting Charts



Financial Spread Betting on EUR/ZAR

As an example, let's imagine that you sign into the Financial Spreads site and the current quote is:

  EUR/ZAR Rolling Spot Sell

13.350
Buy

13.365


Here is a guide to how the market works...

Market:EUR/ZAR Rolling Spot
The Price:R 13.350 - R 13.365
This Means:Now you can speculate on the EUR/ZAR Rolling Spot market to go:

  Spread Betting Higher than R 13.365, or
  Spread Betting Lower than R 13.350

This market is a 'Rolling' market and so there is no closing date. If you decide not to close your trade and the trading session ends then your trade will roll over to the next trading day.

Note that if a trade is rolled over then you will either be charged or receive a small fee for overnight financing depending on whether you are betting on the market to decrease or increase. For further information also see Rolling Spread Bets.
Points (Units) Traded:Financial spread bets on the EUR/ZAR market are made in £x per point.

Where a point is R 0.001 of the forex pair's price movement.

E.g. if EUR/ZAR moves by R 0.030 then you would win or lose 30 times your stake.
Trade Size:You work out how much you would like to stake per point, e.g. £2 per point, £8 per point, £20 per point etc.
Simplified Trading Exercise:If, as an example, you had a stake of £2 per point and EUR/ZAR changes by R 0.032 (32 points), you would win / lose £2 per point x 32 points = £64.


Worked Spread Betting Example - Taking a Long Position on EUR/ZAR

Online spread betting on the FX market to move up in value

You Now Consider Whether to Buy or Sell: EUR/ZAR going:

  Spread Betting Higher than R 13.365? or
  Spread Betting Lower than R 13.350?

Let's Assume You Want to Buy:   Spread Betting Higher than R 13.365
You Decide How Much to Risk, Let's Assume You Opt For: £3 per point
So What Happens Now?
  • You will win £3 for every point (R 0.001) EUR/ZAR rises above R 13.365
  • You will lose £3 for each point (R 0.001) EUR/ZAR pushes lower than R 13.365
When Buying a Market Your Trading P&L = (Final Price - Initial Price) x stake
 
Trading Situation 1
EUR/ZAR pushes higher and the spread trading market is adjusted to R 13.422 - R 13.437, i.e. on Financial Spreads you would see:   13.422   13.437
Close for a Profit? You may opt to let your position run or close it in order to lock in a profit. In this instance you decide to settle your position and sell the market at R 13.422.
Your Trading P&L = (Final Price - Initial Price) x stake
(R 13.422 - R 13.365) x £3 per point (£3 per R 0.001)
R 0.057 x £3 per point
57 points x £3 per point
Your Trading P&L = £171 profit
 
Trading Situation 2
EUR/ZAR goes lower and the market moves to R 13.298 - R 13.313, i.e. you'd see:   13.298   13.313
Close and Restrict the Loss? At this point, you can choose to leave your bet open or close it in order to restrict your loss. In this case you choose to close your position by selling the market at R 13.298.
Your Trading P&L = (Final Price - Initial Price) x stake
(R 13.298 - R 13.365) x £3 per point (£3 per R 0.001)
R -0.067 x £3 per point
-67 points x £3 per point
Your Trading P&L = -£201 loss


Spread Trading Example - Going Short of EUR/ZAR

Financial spread trading on the FX market to decrease in value

You Work Out Whether to Go Long or Short: EUR/ZAR moving:

  Spread Betting Higher than R 13.365? or
  Spread Betting Lower than R 13.350?

You Might Decide to Sell:   Spread Betting Lower than R 13.350
You Choose How Much to Risk, Opting for: £2 per point
What Happens Now?
  • You will lose £2 for each point (R 0.001) EUR/ZAR rises higher than R 13.350
  • You will win £2 for each point (R 0.001) EUR/ZAR goes below R 13.350
If You Are Spread Betting on a Market to Fall Your Trading P&L = (Initial Price - Final Price) x stake
 
Trading Situation 3
EUR/ZAR moves lower and the spread betting market becomes R 13.266 - R 13.281:   13.266   13.281
Time to Take Your Profit? You may opt to leave your position open or close it, i.e. close your spread bet to lock in your profit. In this instance you opt to close your trade and buy the market at R 13.281.
Your Trading P&L = (Initial Price - Final Price) x stake
(R 13.350 - R 13.281) x £2 per point (£2 per R 0.001)
R 0.069 x £2 per point
69 points x £2 per point
Your Trading P&L = £138 profit
 
Trading Situation 4
EUR/ZAR rises and the financial spread betting market adjusts and moves to R 13.415 - R 13.430, i.e. on Financial Spreads you'd see:   13.415   13.430
Limit the Loss?You may decide to let your trade run or close it, i.e. close your position and limit your losses. In this example you decide to settle your trade by buying the market at R 13.430.
Your Trading P&L = (Initial Price - Final Price) x stake
(R 13.350 - R 13.430) x £2 per point (£2 per R 0.001)
R -0.080 x £2 per point
-80 points x £2 per point
Your Trading P&L = -£160 loss

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

FinancialSpreads provide a free Demo Account which means you can try out spread betting and CFD trading, test new ideas, analyse the live charts and try out trading orders on CFD and spread trading markets like EUR/ZAR.

The Practice Account comes with a wide selection of markets such as stocks, indices, commodity markets and forex.

Open a CFD Trading / Spread Betting Demo Account



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Also see:
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