Guide to Sterling/Yen 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 GBP/JPY?

A Financial Spreads account offers clients a wide array of currency spread betting and CFD markets like GBP/JPY in addition to the GBP/USD, USD/JPY and EUR/AUD.

Where Can I Access Live GBP/JPY Prices?

FinancialSpreads provides investors with real time pricing on numerous markets including GBP/JPY and a range of other FX, stocks, indices and commodities markets.

Where Can I Get Live GBP/JPY Charts?

Using a Financial Spreads account you can make use of real time charts for GBP/JPY and over a thousand other spread betting and CFD markets.

Along with several display styles, the charting package has a variety of features:
Sample Financial Spreads FX rate trading chart:

Forex Spread Betting Charts



Financial Spread Betting on GBP/JPY

For example, let's assume you look at the FinancialSpreads website and see a price of:

  GBP/JPY Rolling Spot Sell

183.15
Buy

183.18


Here's a brief example of how the market works:

The Spread Betting MarketGBP/JPY Rolling Spot
The Price¥183.15 - ¥183.18
How This WorksNow you can trade on the GBP/JPY Rolling Spot market to move:

  Spread Betting Above ¥183.18, or
  Spread Betting Below ¥183.15

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

Note: if a trade rolls over then you will either be charged or credited for overnight financing based upon whether you are betting on the market to increase or decrease. For additional information see Rolling Spread Bets.
Units (Points) TradedSpread betting trades on the GBP/JPY market are made in £x per point.

Where a point is ¥0.01 of the forex market's price movement.

E.g. if GBP/JPY changes by ¥0.40 then you would win/lose 40 times your stake.
Stake (Trade Size)You work out how much you want to trade per point, e.g. £2 per point, £4 per point, £10 per point etc.
Simplified ExampleWith that in mind, if you chose a stake of £5 per point and GBP/JPY moves ¥0.24 (24 points), you would win / lose £5 per point x 24 points = £120.


Trading Example - Going Long of GBP/JPY

Online spread betting on the currency market to rise

You Work Out Whether to Buy or Sell GBP/JPY to go:

  Spread Betting Above ¥183.18? or
  Spread Betting Below ¥183.15?

Let's Assume You Decide to Buy   Spread Betting Above ¥183.18
You Decide How Much to Risk, Choosing £2 per point
Now What?
  • You will make £2 for every point (¥0.01) GBP/JPY moves above ¥183.18
  • You will lose £2 for each point (¥0.01) GBP/JPY goes below ¥183.18
If You Are Buying a Spread Bet Your P&L = (Closing Price - Initial Price) x stake
 
Situation 1
GBP/JPY goes higher and the financial spread betting market adjusts and moves to ¥184.09 - ¥184.12. Therefore you'd see:   184.09   184.12
Close and Take a Profit? At this point, you can opt to keep your position open or close it, i.e. close your spread bet to lock in a profit. In this example you choose to settle your bet by selling at ¥184.09.
Your P&L = (Closing Price - Initial Price) x stake
(¥184.09 - ¥183.18) x £2 per point (£2 per ¥0.01)
¥0.91 x £2 per point
91 points x £2 per point
Your P&L = £182 profit
 
Situation 2
GBP/JPY slips and the spread betting market is revised to ¥182.36 - ¥182.39. Therefore you would see this on Financial Spreads:   182.36   182.39
Limit Your Loss? You may decide to let your position run or close it in order to limit your losses. In this case you choose to settle your bet and sell the market at ¥182.36.
Your P&L = (Closing Price - Initial Price) x stake
(¥182.36 - ¥183.18) x £2 per point (£2 per ¥0.01)
-¥0.82 x £2 per point
-82 points x £2 per point
Your P&L = -£164 loss


Spread Betting Example - Taking a Bearish View of GBP/JPY

Financial spread trading on the currency market to decrease

You Now Choose Whether to Buy or Sell GBP/JPY going:

  Spread Betting Above ¥183.18? or
  Spread Betting Below ¥183.15?

Let's Say You Want to Sell   Spread Betting Below ¥183.15
You Choose Your Stake Size, Let's Say You Choose £1 per point
What Next?
  • You will lose £1 for each point (¥0.01) GBP/JPY rises higher than ¥183.15
  • You will make £1 for each point (¥0.01) GBP/JPY moves below ¥183.15
If You Are Spread Betting on a Market to Go Down Your P&L = (Initial Price - Closing Price) x stake
 
Situation 3
GBP/JPY drops and the spread trading market changes to ¥181.76 - ¥181.79. Therefore you'd see this on Financial Spreads:   181.76   181.79
Close for a Profit? At this point, you could choose to leave your trade open or close it to lock in your profit. In this case you choose to close your trade by buying the market at ¥181.79.
Your P&L = (Initial Price - Closing Price) x stake
(¥183.15 - ¥181.79) x £1 per point (£1 per ¥0.01)
¥1.36 x £1 per point
136 points x £1 per point
Your P&L = £136 profit
 
Situation 4
GBP/JPY moves higher and the market is adjusted to ¥184.36 - ¥184.39. Therefore you would see:   184.36   184.39
Time to Restrict the Loss?You could decide to leave your bet open or close it, i.e. close your trade to restrict your loss. For this example, you decide to settle your position and buy the market at ¥184.39.
Your P&L = (Initial Price - Closing Price) x stake
(¥183.15 - ¥184.39) x £1 per point (£1 per ¥0.01)
-¥1.24 x £1 per point
-124 points x £1 per point
Your P&L = -£124 loss

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

FinancialSpreads.com offers a Demo Account which means you can try out spread betting and CFD trading, try out trading orders, review real time charts and test new ideas on markets such as GBP/JPY.

The Demo Account isn't restricted to a small selection of markets; traders can also get trading experience across a wide variety of commodities, forex, index markets and stocks.



Contact Customer Support

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

Also see: