Guide to Sterling/South African Rand Spread Betting

Support: +44 (0) 203 301 0483 | support@financialspreads.com
Financial Spreads: Spread Betting and CFD Trading

Where Can I Spread Bet on GBP/ZAR?

A Financial Spreads account offers clients a wide array of currency CFD and spread trading markets including GBP/ZAR as well as the euro/sterling, euro/dollar and Australian dollar/US dollar.

Where Can I Access Live GBP/ZAR Prices?

Using a FinancialSpreads account clients can take a position on 1,000+ real-time CFD trading and spread betting prices including markets like GBP/ZAR and a wide range of other currencies, commodities, stocks and indices prices.

Where Can I Get Live GBP/ZAR Charts?

When using a Financial Spreads account you are able to access real time candlestick charts for GBP/ZAR and more than 1,000 other CFD and financial spread betting markets.

As well as different chart types, the package also comes with a wide array of options including:
Sample currency trading spread betting chart:

Forex Spread Betting Charts



Financial Spread Betting on GBP/ZAR

Let's suppose you look at the Financial Spreads website and see something like:

  GBP/ZAR Rolling Spot Sell

18.034
Buy

18.054


Here's a brief guide to how the market works

Spread Trading MarketGBP/ZAR Rolling Spot
The PriceR 18.034 - R 18.054
How This WorksYou can trade on the GBP/ZAR Rolling Spot market going:

  Spread Betting Above R 18.054, or
  Spread Betting Below R 18.034

This is a 'Rolling' spread betting market meaning that it does not have an expiry date. If you decide not to close your trade and the session ends then your position will roll over to the next trading session.

Note: if a trade does roll over then you will either receive or pay interest for overnight financing based upon whether you are speculating on the market to increase or decrease. For additional details also see Rolling Spread Bets.
Traded UnitsTrades on the GBP/ZAR market are made in £x per point.

Where a point is R 0.001 of the FX market's price movement.

E.g. if GBP/ZAR changes by R 0.040 then you would lose or gain 40 multiples of your stake.
StakeYou decide how much you want to trade per point, e.g. £2 per point, £5 per point, £20 per point etc.
Short Staking ExerciseWith that in mind, if your stake was £3 per point and GBP/ZAR moves R 0.028 (28 points), you would win/lose £3 per point x 28 points = £84.


Worked Example - Buying GBP/ZAR

Online spread betting on the forex rate to go up

You Now Decide Whether to Buy or Sell GBP/ZAR to go:

  Spread Betting Above R 18.054? or
  Spread Betting Below R 18.034?

Let's Assume You Decide to Go Long   Spread Betting Above R 18.054
You Decide Your Stake Size, Let's Assume You Opt For £3 per point
Now What?
  • You will make a profit of £3 for every point (R 0.001) GBP/ZAR rises above R 18.054
  • You will make a loss of £3 for each point (R 0.001) GBP/ZAR goes lower than R 18.054
When You Buy a Spread Bet Your P&L = (Closing Price - Opening Price) x stake
 
Trading Situation 1
GBP/ZAR moves higher and the spread betting market becomes R 18.115 - R 18.135, i.e.   18.115   18.135
Lock in a Profit? At this point, you may opt to leave your position open or close it and lock in a profit. For this example, you decide to close your position by selling at R 18.115.
Your P&L = (Closing Price - Opening Price) x stake
(R 18.115 - R 18.054) x £3 per point (£3 per R 0.001)
R 0.061 x £3 per point
61 points x £3 per point
Your P&L = £183 profit
 
Trading Situation 2
GBP/ZAR slips and the spread trading market is adjusted to R 18.000 - R 18.020, i.e. Financial Spreads would show:   18.000   18.020
Time to Restrict the Loss? You may opt to keep your trade open or close it, i.e. close your trade to limit your loss. In this case you decide to close your trade and sell at R 18.000.
Your P&L = (Closing Price - Opening Price) x stake
(R 18.000 - R 18.054) x £3 per point (£3 per R 0.001)
R -0.054 x £3 per point
-54 points x £3 per point
Your P&L = -£162 loss


Trading Example - Going Short of GBP/ZAR

Financial spread betting on the forex rate to decrease

You Now Decide to Buy or Sell GBP/ZAR to move:

  Spread Betting Above R 18.054? or
  Spread Betting Below R 18.034?

Let's Assume You Choose to Sell   Spread Betting Below R 18.034
You Choose Your Stake Size, Let's Assume You Choose £2 per point
So What Now?
  • You will make a loss of £2 for each point (R 0.001) GBP/ZAR increases higher than R 18.034
  • You will make a profit of £2 for each point (R 0.001) GBP/ZAR moves lower than R 18.034
When Speculating on a Market to Decrease Your P&L = (Opening Price - Closing Price) x stake
 
Trading Situation 3
GBP/ZAR drops and the market moves to R 17.937 - R 17.957, so you'd see:   17.937   17.957
Close and Take Your Profit? At this point, you could opt to let your bet run or close it in order to lock in your profit. In this example you decide to settle your position and buy the market at R 17.957.
Your P&L = (Opening Price - Closing Price) x stake
(R 18.034 - R 17.957) x £2 per point (£2 per R 0.001)
R 0.077 x £2 per point
77 points x £2 per point
Your P&L = £154 profit
 
Trading Situation 4
GBP/ZAR increases and the financial spread betting market is revised to R 18.082 - R 18.102. So you would see this on Financial Spreads:   18.082   18.102
Close and Limit the Loss?At this point, you can decide to let your position run or close it, i.e. close your spread bet to limit your losses. In this example you opt to close your position by buying at R 18.102.
Your P&L = (Opening Price - Closing Price) x stake
(R 18.034 - R 18.102) x £2 per point (£2 per R 0.001)
R -0.068 x £2 per point
-68 points x £2 per point
Your P&L = -£136 loss

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

FinancialSpreads.com provide a free Demo Account where investors are able to try out trading theories, practice trading, check real-time charts and use trading orders etc. on spread trading and CFD markets like GBP/ZAR.

The Financial Spreads Demo Account doesn't just offer the above market; you are also able to gain experience on a large selection of FX rates, commodities, stocks and index markets.



Contact Customer Support

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

Also see:
80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Spread betting & CFDs trading are complex instruments & come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading these products with this provider. You should consider whether you understand how these products work & whether you can afford to take the high risk of losing your money. Click here to see the risk warning notice.