Guide to Sterling/New Zealand Dollar Spread Betting

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Financial Spreads: Spread Betting and CFD Trading

Where Can I Spread Bet on GBP/NZD?

A Financial Spreads account provides clients with a range of foreign exchange spread betting and contracts for difference markets like GBP/NZD as well as the EUR/GBP, EUR/CHF and USD/JPY.

Where Can I Access Live GBP/NZD Prices?

FinancialSpreads.com provides clients with real-time pricing on over a thousand financial spread betting and CFD markets including GBP/NZD and a range of other currencies, commodities, individual shares and stock market indices.

Where Can I Get Live GBP/NZD Charts?

With a Financial Spreads account investors can look at a real-time charting package for GBP/NZD and over a thousand other financial spread betting and CFD markets.

Along with different display styles, the package comes with a wide array of advanced functions:
Example currency trading spread trading chart:

Forex Spread Betting Charts



How to Spread Bet on GBP/NZD

Let's assume that you log on to FinancialSpreads.com and are presented with:

  GBP/NZD Rolling Spot Sell

2.0674
Buy

2.0680


Here's a guide to how it works...

Spread Trading Market:GBP/NZD Rolling Spot
Spread Trading Price:NZ$2.0674 - NZ$2.0680
This Means:You can spread bet on the GBP/NZD Rolling Spot market to push:

  Spread Betting Higher than NZ$2.0680, or
  Spread Betting Lower than NZ$2.0674

This market is a Rolling market meaning that it does not have an expiry date. If you don't close your trade and the session ends then your trade will automatically roll over into the next trading session.

Note that if a trade rolls over then you will either be charged or receive interest for overnight financing based upon whether you are betting on the market to go down or up. For more details also see Rolling Spread Bets.
Units Traded:Trades on the GBP/NZD market are made in £x per point.

Where a point is NZ$0.0001 of the currency pair's price movement.

E.g. if GBP/NZD moves NZ$0.0035 then you would win / lose 35 times your stake.
Stake (Trade Size):You decide how much you would like to risk per point, e.g. £1 per point, £5 per point, £20 per point etc.
Brief Example:With that in mind, if you chose a stake of £2 per point and GBP/NZD moves by NZ$0.0021 (21 points), you would lose or win £2 per point x 21 points = £42.


Trading Example - Taking a Bullish View of GBP/NZD

Financial spread trading on the FX rate to rise in value

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

  Spread Betting Higher than NZ$2.0680? or
  Spread Betting Lower than NZ$2.0674?

Let's Assume You Buy:   Spread Betting Higher than NZ$2.0680
You Decide Your Stake, Let's Assume You Opt For: £2 per point
So What Next?
  • You win £2 for each point (NZ$0.0001) GBP/NZD goes higher than NZ$2.0680
  • You will lose £2 for every point (NZ$0.0001) GBP/NZD decreases below NZ$2.0680
If You Are Betting on a Market to Increase Your Trading P/L = (Settlement Price - Opening Price) x stake
 
Example 1
GBP/NZD rises and the market moves to NZ$2.0732 - NZ$2.0738, i.e.   2.0732   2.0738
Time to Take Your Profit? At this point, you could choose to keep your position open or close it, i.e. close your spread bet to lock in your profit. In this instance you opt to settle your bet by selling the market at NZ$2.0732.
Your Trading P/L = (Settlement Price - Opening Price) x stake
(NZ$2.0732 - NZ$2.0680) x £2 per point (£2 per NZ$0.0001)
NZ$0.0052 x £2 per point
52 points x £2 per point
Your Trading P/L = £104 profit
 
Example 2
GBP/NZD goes lower and the financial spread betting market is revised and moved to NZ$2.0620 - NZ$2.0626:   2.0620   2.0626
Restrict Your Loss? At this point, you could opt to keep your position open or close it, i.e. close your trade to restrict your losses. For this example, you choose to close your bet and sell at NZ$2.0620.
Your Trading P/L = (Settlement Price - Opening Price) x stake
(NZ$2.0620 - NZ$2.0680) x £2 per point (£2 per NZ$0.0001)
-NZ$0.0060 x £2 per point
-60 points x £2 per point
Your Trading P/L = -£120 loss


Worked Trading Example - Selling GBP/NZD

Spread betting on the FX rate to move down in value

You Now Consider Whether to Buy or Sell: GBP/NZD to go:

  Spread Betting Higher than NZ$2.0680? or
  Spread Betting Lower than NZ$2.0674?

Let's Assume You Choose to Go Short:   Spread Betting Lower than NZ$2.0674
You Decide Your Stake Size, Choosing: £3 per point
Now What?
  • You will lose £3 for every point (NZ$0.0001) GBP/NZD moves above NZ$2.0674
  • You win £3 for every point (NZ$0.0001) GBP/NZD goes lower than NZ$2.0674
If You Are Betting on a Market to Go Down Your Trading P/L = (Opening Price - Settlement Price) x stake
 
Example 3
GBP/NZD pushes lower and the spread betting market is revised and set at NZ$2.0630 - NZ$2.0636, so you'd see:   2.0630   2.0636
Close and Take a Profit? You could opt to leave your trade open or close it, i.e. close your position to lock in your profit. In this case you decide to close your bet by buying at NZ$2.0636.
Your Trading P/L = (Opening Price - Settlement Price) x stake
(NZ$2.0674 - NZ$2.0636) x £3 per point (£3 per NZ$0.0001)
NZ$0.0038 x £3 per point
38 points x £3 per point
Your Trading P/L = £114 profit
 
Example 4
GBP/NZD goes higher and the spread trading market is moved to NZ$2.0712 - NZ$2.0718. I.e.   2.0712   2.0718
Time to Limit Your Loss?At this point, you may opt to let your spread bet run or close it and limit your losses. In this case you opt to settle your position and buy at NZ$2.0718.
Your Trading P/L = (Opening Price - Settlement Price) x stake
(NZ$2.0674 - NZ$2.0718) x £3 per point (£3 per NZ$0.0001)
-NZ$0.0044 x £3 per point
-44 points x £3 per point
Your Trading P/L = -£132 loss

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

FinancialSpreads.com offers a Demo Account which means investors can practice CFD trading and spread betting, test new trading orders, check the trading charts and try out new theories etc. on CFD and spread betting markets like GBP/NZD.

The Practice Account offers more than a small selection of markets; traders can get experience using a range of commodity markets, currencies, stock market indices and stocks and shares.

Open a Free CFD Trading / Spread Betting Demo Account



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