Guide to New Zealand Dollar/Yen Spread Betting

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Financial Spreads: Spread Betting and CFD Trading

Where Can I Spread Bet on NZD/JPY?

With FinancialSpreads clients can take a position on a large variety of FX pairs, for example investors can trade on NZD/JPY in addition to the EUR/USD, GBP/USD and EUR/CHF.

Where Can I Access Live NZD/JPY Prices?

A FinancialSpreads account provides clients with real-time prices on 1,000+ spread betting and CFD markets like NZD/JPY and a wide array of other FX, stock markets, commodities and equities markets.

Where Can I Get Live NZD/JPY Charts?

Using a Financial Spreads account clients can look at real time candlestick charts for NZD/JPY and over 1,000 other financial spread betting and CFD markets.

Along with the various chart types, the package comes with a range of benefits:
Sample currency trading trading chart:

Forex Spread Betting Charts



A Guide to Spread Trading on NZD/JPY

For example, let's say you look at the Financial Spreads site and see a price of:

  NZD/JPY Rolling Spot Sell

88.58
Buy

88.61


Here is a guide to how the market works...

The MarketNZD/JPY Rolling Spot
Spread Betting Price¥88.58 - ¥88.61
This MeansYou can bet on the NZD/JPY Rolling Spot market going:

  Spread Betting Higher than ¥88.61, or
  Spread Betting Lower than ¥88.58

This is a 'Rolling' spread betting market and so there is no expiry date. If you don't close your trade and the trading session ends then your position will roll over to the next trading session.

If a trade is rolled over then you will either be charged or receive a small fee for overnight financing depending upon whether you are betting on the market to rise or fall. To learn more see Rolling Spread Bets.
Units (Points) TradedTrades on the NZD/JPY market are priced in £x per point.

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

E.g. if NZD/JPY changes by ¥0.55 then you would lose or gain 55 multiples of your stake.
Stake SizeYou decide how much you want to trade per point, e.g. £2 per point, £5 per point, £10 per point etc.
Brief ExampleFor example, if you have a stake of £4 per point and NZD/JPY moves by ¥0.25 (25 points), you would win/lose £4 per point x 25 points = £100.


Worked Spread Betting Example - Taking a Long Position on NZD/JPY

Online spread betting on the FX rate to go up in value

You Choose to Buy or Sell NZD/JPY to push:

  Spread Betting Higher than ¥88.61? or
  Spread Betting Lower than ¥88.58?

You Might Decide to Go Long   Spread Betting Higher than ¥88.61
You Choose How Much to Risk, Let's Assume You Select £5 per point
So Now What Happens?
  • You gain £5 for each point (¥0.01) NZD/JPY pushes above ¥88.61
  • You lose £5 for every point (¥0.01) NZD/JPY falls below ¥88.61
When Spread Betting on a Market to Increase Your Trading P&L = (Final Price - Initial Price) x stake
 
Situation 1
NZD/JPY moves higher and the spread trading market is revised to ¥88.92 - ¥88.95, i.e. on Financial Spreads you would see:   88.92   88.95
Time to Take Your Profit? At this point, you may decide to leave your bet open or close it and take a profit. In this case you choose to settle your trade and sell the market at ¥88.92.
Your Trading P&L = (Final Price - Initial Price) x stake
(¥88.92 - ¥88.61) x £5 per point (£5 per ¥0.01)
¥0.31 x £5 per point
31 points x £5 per point
Your Trading P&L = £155 profit
 
Situation 2
NZD/JPY goes lower and the spread betting market is revised and changes to ¥88.26 - ¥88.29, i.e.   88.26   88.29
Time to Restrict Your Loss? At this point, you can decide to let your trade run or close it in order to restrict your loss. For this example, you opt to close your position and sell at ¥88.26.
Your Trading P&L = (Final Price - Initial Price) x stake
(¥88.26 - ¥88.61) x £5 per point (£5 per ¥0.01)
-¥0.35 x £5 per point
-35 points x £5 per point
Your Trading P&L = -£175 loss


Worked Example - Taking a Short Position on NZD/JPY

Financial spread trading on the FX rate to go lower

You Now Decide Whether to Go Long or Short NZD/JPY to go:

  Spread Betting Higher than ¥88.61? or
  Spread Betting Lower than ¥88.58?

Let's Assume You Go Short   Spread Betting Lower than ¥88.58
You Select Your Stake, Selecting £4 per point
What Next?
  • You lose £4 for every point (¥0.01) NZD/JPY moves higher than ¥88.58
  • You gain £4 for every point (¥0.01) NZD/JPY decreases lower than ¥88.58
When Selling a Market Your Trading P&L = (Initial Price - Final Price) x stake
 
Situation 3
NZD/JPY slips and the financial spread betting market is adjusted to ¥88.22 - ¥88.25:   88.22   88.25
Time to Lock in a Profit? At this point, you could decide to let your spread bet run or close it in order to lock in a profit. For this example, you opt to close your bet and buy at ¥88.25.
Your Trading P&L = (Initial Price - Final Price) x stake
(¥88.58 - ¥88.25) x £4 per point (£4 per ¥0.01)
¥0.33 x £4 per point
33 points x £4 per point
Your Trading P&L = £132 profit
 
Situation 4
NZD/JPY goes higher and the market becomes ¥88.92 - ¥88.95:   88.92   88.95
Limit the Loss?You may decide to let your trade run or close it to restrict your loss. In this example you choose to close your position and buy the market at ¥88.95.
Your Trading P&L = (Initial Price - Final Price) x stake
(¥88.58 - ¥88.95) x £4 per point (£4 per ¥0.01)
-¥0.37 x £4 per point
-37 points x £4 per point
Your Trading P&L = -£148 loss

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

FinancialSpreads.com gives investors the chance to try new strategies by using a Demo Account, markets include NZD/JPY.

The Financial Spreads Demo Account doesn't just offer the above market; investors are also able to get trading experience on a large variety of shares, stock market indices, commodity markets and FX rates.

Open a Free CFD Trading and Spread Betting Demo Account



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Also see:
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