Guide to Sterling/Dollar 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/USD?

With FinancialSpreads clients can take a view on a variety of FX pairs, for example markets include GBP/USD but also the euro/pound, euro/Swiss franc and dollar/yen.

Where Can I Access Live GBP/USD Prices?

Using a Financial Spreads account you are able to take a view on more than a thousand live CFD trading and spread betting prices like GBP/USD and a range of other FX, stock market indices, equities and commodities markets.

Where Can I Get Live GBP/USD Charts?

Using a Financial Spreads account you have access to real time candlestick charts for GBP/USD and over 1,000 other spread trading and CFD markets.

To aid your analysis, the charting package has a variety of advanced options:
Sample currency trading spread betting chart:

Forex Spread Betting Charts



How to Spread Bet on GBP/USD

Let's assume that you look at the FinancialSpreads site and the trading platform is showing a quote of:

  GBP/USD Rolling Spot Sell

1.53941
Buy

1.53950


This is a guide to how it works.

The Spread Betting MarketGBP/USD Rolling Spot
The Spread Betting Price$1.53941 - $1.53950
This Means ThatYou can take a position on the GBP/USD Rolling Spot market to push:

  Spread Betting Above $1.53950, or
  Spread Betting Below $1.53941

This market is a 'Rolling' market which means that there is no closing date. If you decide not to close your position and the session ends then your position will automatically roll over to the next trading session.

Note: if a trade does roll over then you will either be debited or credited for overnight financing depending upon whether you are betting on the market to decrease or increase. For more information also see Rolling Spread Betting.
Units (Points) TradedFinancial spread bets on the GBP/USD market are priced in £x per point.

Where a point is $0.00010 of the currency pair's price movement.

E.g. if GBP/USD moves by $0.00550 then you would win or lose 55 times your stake.
Stake SizeYou choose how much you would like to stake per point, e.g. £3 per point, £8 per point, £10 per point etc.
Staking ExampleWith that in mind, if you had a stake of £3 per point and GBP/USD changes by $0.00340 (34 points), you would lose or gain £3 per point x 34 points = £102.


Worked Spread Betting Example - Buying GBP/USD

Spread trading on the forex pair to move higher

You Now Decide to Go Long or Short GBP/USD to move:

  Spread Betting Above $1.53950? or
  Spread Betting Below $1.53941?

You Might Choose to Go Long   Spread Betting Above $1.53950
You Choose Your Stake Size, Let's Say You Select £2 per point
So What Happens Now?
  • You will win £2 for each point ($0.00010) GBP/USD goes higher than $1.53950
  • You will make a loss of £2 for every point ($0.00010) GBP/USD moves lower than $1.53950
If You Are Buying a Spread Bet Your P/L = (Settlement Price - Initial Price) x stake
 
Trading Scenario 1
GBP/USD goes higher and the market becomes $1.54435 - $1.54444, therefore you'd see:   1.54435   1.54444
Close and Take Your Profit? You could decide to keep your position open or close it, i.e. close your trade to lock in a profit. In this example you decide to settle your bet and sell at $1.54435.
Your P/L = (Settlement Price - Initial Price) x stake
($1.54435 - $1.53950) x £2 per point (£2 per $0.00010)
$0.00485 x £2 per point
48.5 points x £2 per point
Your P/L = £97.00 profit
 
Trading Scenario 2
GBP/USD falls and the financial spread betting market is revised and changes to $1.53388 - $1.53397. I.e. you would see:   1.53388   1.53397
Close and Restrict the Loss? At this point, you can opt to keep your trade open or close it, i.e. close your trade to restrict your loss. In this case you choose to close your bet by selling at $1.53388.
Your P/L = (Settlement Price - Initial Price) x stake
($1.53388 - $1.53950) x £2 per point (£2 per $0.00010)
-$0.00562 x £2 per point
-56.2 points x £2 per point
Your P/L = -£112.40 loss


Spread Betting Example - Selling GBP/USD

Financial spread trading on the forex pair to go down in value

You Now Choose to Buy or Sell GBP/USD to go:

  Spread Betting Above $1.53950? or
  Spread Betting Below $1.53941?

Let's Say You Want to Sell   Spread Betting Below $1.53941
You Select Your Stake Size, Choosing £1 per point
So What Now?
  • You will make a loss of £1 for every point ($0.00010) GBP/USD increases above $1.53941
  • You will win £1 for every point ($0.00010) GBP/USD moves below $1.53941
If You Are Betting on a Market to Decrease Your P/L = (Initial Price - Settlement Price) x stake
 
Trading Scenario 3
GBP/USD pushes lower and the spread betting market is revised and set at $1.53059 - $1.53068, i.e. you would see:   1.53059   1.53068
Take Your Profit? You could decide to leave your spread bet open or close it, i.e. close your trade to lock in your profit. In this example you choose to close your trade by buying at $1.53068.
Your P/L = (Initial Price - Settlement Price) x stake
($1.53941 - $1.53068) x £1 per point (£1 per $0.00010)
$0.00873 x £1 per point
87.3 points x £1 per point
Your P/L = £87.30 profit
 
Trading Scenario 4
GBP/USD increases and the spread trading market is revised to $1.54943 - $1.54952. I.e. the market moves to:   1.54943   1.54952
Time to Restrict Your Loss?You can choose to keep your bet open or close it, i.e. close your spread bet and limit your losses. In this case you decide to settle your position and buy at $1.54952.
Your P/L = (Initial Price - Settlement Price) x stake
($1.53941 - $1.54952) x £1 per point (£1 per $0.00010)
-$0.01011 x £1 per point
-101.1 points x £1 per point
Your P/L = -£101.10 loss

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

FinancialSpreads.com offers a free Practice Account where you are able to practice spread betting and CFD trading, test trading theories, review the live charts and test new trading orders on spread trading and CFD markets like GBP/USD.

The Practice Account offers a wide array of markets like commodity markets, currencies, stock market indices and equities.

Open a Free CFDs and Spread Betting Demo Account


Sterling Commitments of Traders Report - 18 Apr 2017


Futures Only Positions, CME , Code 96742, (Contracts of £62,500)

Reporting Firms Non-Reportable Positions
Non-Commercial
Commercial Total Reportable
 
Commitments Open Interest Commitments
Long Short Spreads Long Short Long Short Long Short
48,348 147,838 3,713 180,855 75,643 232,916 227,194 261,350 28,434 34,156
 
Changes from 11 Apr 2017 Change in Open Interest Changes from
Long Short Spreads Long Short Long Short Long Short
16,477 10,066 352 -2,377 4,841 14,452 15,259 17,162 2,710 1,903
 
Percent of Open Interest for Each Category of Trader
Long Short Spreads Long Short Long Short   Long Short
18.5% 56.6% 1.4% 69.2% 28.9% 89.1% 86.9%   10.9% 13.1%
 
Number of Traders in Each Category Total Traders  
Long Short Spreads Long Short Long Short    
33 45 18 30 43 74 95 131    
 
Long/Short Commitments Ratios   Long/Short Ratio
Ratio   Ratio Ratio   Ratio
1:3.1   2.4:1 1:1   1:1.2
 
Net Commitment Change  
6,411  



Contact Customer Support

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

Also see: