Guide to Sterling/Australian Dollar Spread Betting

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Financial Spreads: Spread Betting and CFD Trading

Where Can I Spread Bet on GBP/AUD?

With FinancialSpreads investors can take a position on an array of forex rates. E.g. GBP/AUD as well as the euro/dollar, dollar/yen and euro/Swiss franc.

Where Can I Access Live GBP/AUD Prices?

When trading with a FinancialSpreads account clients can trade on 1,000+ live prices like GBP/AUD and a large variety of other foreign exchange, commodities, shares and stock markets.

Where Can I Get Live GBP/AUD Charts?

With FinancialSpreads clients can look at live charts for GBP/AUD and over 1,000 other CFD and spread trading markets.

Along with multiple display styles, the package has a large range of features:
Example forex market chart:

Forex Spread Betting Charts



A Guide to Financial Spread Betting on GBP/AUD

For example, let's say that you sign into the FinancialSpreads website and the live quote is:

  GBP/AUD Rolling Spot Sell

1.9837
Buy

1.9841


Here's an example of how it works.

Spread Betting Market:GBP/AUD Rolling Spot
Quote (The Spread):A$1.9837 - A$1.9841
How the Trade Works:Now you can take a position on the GBP/AUD Rolling Spot market to go:

  Spread Betting Above A$1.9841, or
  Spread Betting Below A$1.9837

This is a 'Rolling' trade and so there is no settlement date for this spread bet. If you decide not to close your trade and the trading session ends then your trade will roll over into the next session.

Note: if a trade rolls over then you will either pay or receive a small fee for overnight financing based on whether you are betting on the market to go down or up. For more details see Rolling Spread Bets.
Units (Points) Traded:Spread trades on the GBP/AUD market are priced in £x per point.

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

E.g. if GBP/AUD moves by A$0.0035 then you would lose or gain 35 times your stake.
Stake Size per Unit:You choose how much you want to risk per point, e.g. £3 per point, £8 per point, £15 per point etc.
Simplified Trading Exercise:If, for example, your stake was £2 per point and GBP/AUD changes by A$0.0035 (35 points), you would lose or win £2 per point x 35 points = £70.


Worked Example - Taking a Long Position on GBP/AUD

Spread betting on the foreign exchange rate to increase

You Select Whether to Go Long or Short: GBP/AUD to move:

  Spread Betting Above A$1.9841? or
  Spread Betting Below A$1.9837?

Let's Assume You Choose to Buy:   Spread Betting Above A$1.9841
You Decide Your Stake Size, Selecting: £4 per point
What Happens Next?
  • You will make £4 for every point (A$0.0001) GBP/AUD moves higher than A$1.9841
  • Your spread bet loses £4 for each point (A$0.0001) GBP/AUD goes below A$1.9841
When Spread Betting on a Market to Rise Your Profits (or Losses) = (Closing Price - Initial Price) x stake
 
Scenario 1
GBP/AUD moves higher and the spread betting market is revised and is set at A$1.9875 - A$1.9879. So you'd see this on Financial Spreads:   1.9875   1.9879
Close for a Profit? At this point, you could choose to let your bet run or close it, i.e. close your trade to lock in your profit. In this case you decide to settle your trade and sell the market at A$1.9875.
Your Profits (or Losses) = (Closing Price - Initial Price) x stake
(A$1.9875 - A$1.9841) x £4 per point (£4 per A$0.0001)
A$0.0034 x £4 per point
34 points x £4 per point
Your Profits (or Losses) = £136 profit
 
Scenario 2
GBP/AUD slips and the spread trading market is moved to A$1.9811 - A$1.9815, i.e. on Financial Spreads you'd see:   1.9811   1.9815
Close and Limit the Loss? You can opt to leave your trade open or close it to limit your losses. In this example you decide to close your bet and sell at A$1.9811.
Your Profits (or Losses) = (Closing Price - Initial Price) x stake
(A$1.9811 - A$1.9841) x £4 per point (£4 per A$0.0001)
-A$0.0030 x £4 per point
-30 points x £4 per point
Your Profits (or Losses) = -£120 loss


Spread Trading Example - Taking a Short Position on GBP/AUD

Spread trading on the foreign exchange rate to decrease in value

You Select Whether to Buy or Sell: GBP/AUD going:

  Spread Betting Above A$1.9841? or
  Spread Betting Below A$1.9837?

Let's Assume You Choose to Go Short:   Spread Betting Below A$1.9837
You Decide How Much to Risk, Let's Assume You Select: £3 per point
What Now?
  • Your spread bet loses £3 for each point (A$0.0001) GBP/AUD pushes higher than A$1.9837
  • You will make £3 for each point (A$0.0001) GBP/AUD decreases lower than A$1.9837
When Spread Betting on a Market to Decrease Your Profits (or Losses) = (Initial Price - Closing Price) x stake
 
Scenario 3
GBP/AUD falls and the market is revised and changes to A$1.9785 - A$1.9789:   1.9785   1.9789
Close and Take a Profit? At this point, you could choose to keep your spread bet open or close it and lock in a profit. In this case you decide to close your bet by buying the market at A$1.9789.
Your Profits (or Losses) = (Initial Price - Closing Price) x stake
(A$1.9837 - A$1.9789) x £3 per point (£3 per A$0.0001)
A$0.0048 x £3 per point
48 points x £3 per point
Your Profits (or Losses) = £144 profit
 
Scenario 4
GBP/AUD pushes higher and the financial spread betting market is revised and moved to A$1.9876 - A$1.9880:   1.9876   1.9880
Time to Restrict the Loss?At this point, you could opt to keep your position open or close it to limit your loss. In this instance you choose to close your position and buy at A$1.9880.
Your Profits (or Losses) = (Initial Price - Closing Price) x stake
(A$1.9837 - A$1.9880) x £3 per point (£3 per A$0.0001)
-A$0.0043 x £3 per point
-43 points x £3 per point
Your Profits (or Losses) = -£129 loss

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

FinancialSpreads.com provide a Demo Account which means investors can review the charts, try out new trading ideas, test trading orders and practice CFD trading and spread betting on markets like GBP/AUD.

The Financial Spreads Demo Account offers more than a small selection of markets; investors can also get experience on a large range of forex pairs, commodities, shares and indices.

Open a Free Spread Betting / CFDs Demo Account



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