Guide to Sterling/Canadian Dollar Spread Betting

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Financial Spreads: Spread Betting and CFD Trading

Where Can I Spread Bet on GBP/CAD?

Financial Spreads provides clients with a variety of forex spread trading and CFD markets including GBP/CAD in addition to the euro/dollar, Australian dollar/US dollar and euro/sterling.

Where Can I Access Live GBP/CAD Prices?

When trading with FinancialSpreads clients can trade on over 1,000 live spread betting and CFD trading prices such as GBP/CAD and a large variety of other currencies, commodities, equities and stock market indices.

Where Can I Get Live GBP/CAD Charts?

When using a FinancialSpreads account clients can make use of live charts for GBP/CAD and more than 1,000 other financial spread betting and CFD markets.

To aid your technical analysis, the charting package has a large range of features:
Sample FinancialSpreads forex market trading chart:

Forex Spread Betting Charts



Financial Spread Betting on GBP/CAD

Let's assume you go on the Financial Spreads site and see the live quote is:

  GBP/CAD Rolling Spot Sell

1.9214
Buy

1.9218


Here's a brief guide to how it works:

The MarketGBP/CAD Rolling Spot
Price (Spread)C$1.9214 - C$1.9218
This Means ThatNow you can take a position on the GBP/CAD Rolling Spot market to push:

  Spread Betting Higher than C$1.9218, or
  Spread Betting Lower than C$1.9214

This is a 'Rolling' spread betting market and so there is no expiry date for this spread bet. If you haven't closed your position and the session ends then your trade will roll over to the next trading day.

If a trade does roll over then you will normally either be credited or charged for overnight financing depending on whether you are betting on the market to rise or fall. For additional details see Rolling Spread Betting.
Traded UnitsBets on the GBP/CAD market are made in £x per point.

Where a point is C$0.0001 of the currency market's price movement.

E.g. if GBP/CAD moves C$0.0045 then you would gain or lose 45 multiples of your stake.
Stake per UnitYou choose how much you are going to stake per point, e.g. £3 per point, £4 per point, £10 per point etc.
Brief ExampleIf you chose a stake of £4 per point and GBP/CAD moves by C$0.0024 (24 points), you would lose/win £4 per point x 24 points = £96.


Worked Spread Trading Example - Taking a Bullish View of GBP/CAD

Online spread betting on the forex pair to move up

You Now Consider Whether to Go Long or Short GBP/CAD to go:

  Spread Betting Higher than C$1.9218? or
  Spread Betting Lower than C$1.9214?

Let's Say You Want to Go Long   Spread Betting Higher than C$1.9218
You Select Your Stake Size, Let's Say You Choose £2 per point
So Now What Happens?
  • You will make a profit of £2 for every point (C$0.0001) GBP/CAD goes above C$1.9218
  • You will lose £2 for each point (C$0.0001) GBP/CAD decreases lower than C$1.9218
When You Buy a Spread Bet Your Profits/Losses = (Final Price - Initial Price) x stake
 
Situation 1
GBP/CAD moves higher and the spread trading market moves to C$1.9274 - C$1.9278. I.e. you'd see:   1.9274   1.9278
Close and Take a Profit? You may decide to let your bet run or close it and take a profit. In this case you opt to close your bet and sell the market at C$1.9274.
Your Profits/Losses = (Final Price - Initial Price) x stake
(C$1.9274 - C$1.9218) x £2 per point (£2 per C$0.0001)
C$0.0056 x £2 per point
56 points x £2 per point
Your Profits/Losses = £112 profit
 
Situation 2
GBP/CAD drops and the spread betting market is revised and moved to C$1.9155 - C$1.9159:   1.9155   1.9159
Close and Restrict the Loss? You may decide to keep your trade open or close it and limit your losses. In this case you choose to settle your trade by selling the market at C$1.9155.
Your Profits/Losses = (Final Price - Initial Price) x stake
(C$1.9155 - C$1.9218) x £2 per point (£2 per C$0.0001)
-C$0.0063 x £2 per point
-63 points x £2 per point
Your Profits/Losses = -£126 loss


Worked Spread Betting Example - Selling GBP/CAD

Spread trading on the forex pair to move lower

You Now Select Whether to Buy or Sell GBP/CAD to move:

  Spread Betting Higher than C$1.9218? or
  Spread Betting Lower than C$1.9214?

Let's Say You Go Short   Spread Betting Lower than C$1.9214
You Select How Much to Risk, Selecting £3 per point
Now What?
  • You will lose £3 for each point (C$0.0001) GBP/CAD moves above C$1.9214
  • You will make a profit of £3 for each point (C$0.0001) GBP/CAD falls lower than C$1.9214
If You Go Short With a Spread Bet Your Profits/Losses = (Initial Price - Final Price) x stake
 
Situation 3
GBP/CAD moves lower and the financial spread betting market is adjusted and moved to C$1.9170 - C$1.9174. I.e. you would see:   1.9170   1.9174
Close and Take Your Profit? At this point, you could opt to keep your position open or close it, i.e. close your position to lock in your profit. In this example you choose to settle your position and buy the market at C$1.9174.
Your Profits/Losses = (Initial Price - Final Price) x stake
(C$1.9214 - C$1.9174) x £3 per point (£3 per C$0.0001)
C$0.0040 x £3 per point
40 points x £3 per point
Your Profits/Losses = £120 profit
 
Situation 4
GBP/CAD increases and the market is moved to C$1.9256 - C$1.9260, so you'd see:   1.9256   1.9260
Restrict Your Loss?You can decide to leave your spread bet open or close it in order to limit your loss. For this example, you choose to settle your position by buying at C$1.9260.
Your Profits/Losses = (Initial Price - Final Price) x stake
(C$1.9214 - C$1.9260) x £3 per point (£3 per C$0.0001)
-C$0.0046 x £3 per point
-46 points x £3 per point
Your Profits/Losses = -£138 loss

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

FinancialSpreads.com provides traders with the option of putting one's trading skills to the test by using a free Demo Account on CFD and spread betting markets such as GBP/CAD.

The Financial Spreads Demo Account isn't restricted to the market above; investors are also able to gain trading experience with a large range of index markets, exchange rates, commodities and stocks and shares.



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Also see:
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