Guide to US Dollar/Canadian Dollar Spread Betting

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Financial Spreads: Spread Betting and CFD Trading

Where Can I Spread Bet on USD/CAD?

Financial Spreads offers clients a range of foreign exchange spread betting and contracts for difference markets like USD/CAD as well as the USD/JPY, GBP/USD and EUR/CHF.

Where Can I Access Live USD/CAD Prices?

When trading with a Financial Spreads account clients are able to access 1,000+ real-time CFD trading and spread betting prices like USD/CAD and a wide array of other forex, stock markets, commodities and stocks.

Where Can I Get Live USD/CAD Charts?

When using a FinancialSpreads account clients can use live charts for USD/CAD and more than a thousand other markets.

Along with different display styles, the package has a wide variety of options:
Example Financial Spreads currency trading chart:

Forex Spread Betting Charts



Financial Spread Betting on USD/CAD

As an example, let's imagine you look at the FinancialSpreads website and see the current quote is:

  USD/CAD Rolling Spot Sell

1.2479
Buy

1.2481


This is a brief guide to how the market works

Spread Betting Market:USD/CAD Rolling Spot
The Spread:C$1.2479 - C$1.2481
This Means:Now you can spread bet on the USD/CAD Rolling Spot market to move:

  Spread Betting Higher than C$1.2481, or
  Spread Betting Lower than C$1.2479

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

Note: if a trade does roll over then you will normally either pay or receive a small fee for overnight financing depending on the direction of your spread bet. For more information also see Rolling Spread Betting.
Points (Units) Traded:Spread betting trades on the USD/CAD market are priced in £x per point.

Where a point is C$0.0001 of the FX market's price movement.

E.g. if USD/CAD changes by C$0.0055 then you would lose or gain 55 multiples of your stake.
Stake:You work out how much you would like to stake per point, e.g. £2 per point, £4 per point, £10 per point etc.
Simplified Example:As an example, if you have a stake of £4 per point and USD/CAD moves C$0.0023 (23 points), you would win / lose £4 per point x 23 points = £92.


Spread Betting Example - Going Long of USD/CAD

Financial spread trading on the forex market to go up

You Work Out Whether to Go Long or Short: USD/CAD moving:

  Spread Betting Higher than C$1.2481? or
  Spread Betting Lower than C$1.2479?

Let's Say You Buy:   Spread Betting Higher than C$1.2481
You Select How Much to Risk, Choosing: £2 per point
Now What?
  • You make a gain of £2 for every point (C$0.0001) USD/CAD moves higher than C$1.2481
  • You will make a loss of £2 for each point (C$0.0001) USD/CAD falls below C$1.2481
If You Go Long With a Spread Bet Your P&L = (Final Price - Initial Price) x stake
 
Example 1
USD/CAD moves higher and the market is moved to C$1.2531 - C$1.2533:   1.2531   1.2533
Time to Lock in a Profit? You may opt to keep your trade open or close it in order to take your profit. In this instance you opt to settle your trade and sell the market at C$1.2531.
Your P&L = (Final Price - Initial Price) x stake
(C$1.2531 - C$1.2481) x £2 per point (£2 per C$0.0001)
C$0.0050 x £2 per point
50 points x £2 per point
Your P&L = £100 profit
 
Example 2
USD/CAD drops and the financial spread betting market is revised to C$1.2423 - C$1.2425. I.e. you would see:   1.2423   1.2425
Restrict the Loss? At this point, you may choose to keep your bet open or close it, i.e. close your spread bet to restrict your loss. In this example you decide to settle your trade by selling at C$1.2423.
Your P&L = (Final Price - Initial Price) x stake
(C$1.2423 - C$1.2481) x £2 per point (£2 per C$0.0001)
-C$0.0058 x £2 per point
-58 points x £2 per point
Your P&L = -£116 loss


Worked Spread Betting Example - Selling USD/CAD

Online spread betting on the forex market to decrease in value

You Decide Whether to Go Long or Short: USD/CAD going:

  Spread Betting Higher than C$1.2481? or
  Spread Betting Lower than C$1.2479?

You Might Decide to Go Short:   Spread Betting Lower than C$1.2479
You Decide Your Stake Size, Opting for: £3 per point
So What Happens Next?
  • You will make a loss of £3 for each point (C$0.0001) USD/CAD increases higher than C$1.2479
  • You make a gain of £3 for each point (C$0.0001) USD/CAD goes lower than C$1.2479
When You Go Short With a Spread Bet Your P&L = (Initial Price - Final Price) x stake
 
Example 3
USD/CAD slips and the spread betting market is revised and is set at C$1.2435 - C$1.2437, i.e. you would see:   1.2435   1.2437
Take Your Profit? At this point, you could choose to leave your spread bet open or close it in order to take a profit. In this instance you choose to settle your bet and buy at C$1.2437.
Your P&L = (Initial Price - Final Price) x stake
(C$1.2479 - C$1.2437) x £3 per point (£3 per C$0.0001)
C$0.0042 x £3 per point
42 points x £3 per point
Your P&L = £126 profit
 
Example 4
USD/CAD goes higher and the spread trading market changes to C$1.2526 - C$1.2528. I.e. you'd see:   1.2526   1.2528
Limit the Loss?You may opt to leave your spread bet open or close it, i.e. close your position and restrict your losses. For this example, you choose to close your trade and buy the market at C$1.2528.
Your P&L = (Initial Price - Final Price) x stake
(C$1.2479 - C$1.2528) x £3 per point (£3 per C$0.0001)
-C$0.0049 x £3 per point
-49 points x £3 per point
Your P&L = -£147 loss

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

Financial Spreads offers a free Demo Account that allows you to test trading theories, analyse the real time charts, try out trading orders and practice trading on markets like USD/CAD.

The Demo Account offers more than one market; you are also able to gain experience using a wide variety of shares, indices, commodities and forex pairs.

Open a CFDs / Spread Betting Demo Account


Canadian Dollar Commitments of Traders Report - 15 May 2018


Futures Only Positions, CME , Code 90741, (Contracts of C$100,000)

Reporting Firms Non-Reportable Positions
Non-Commercial
Commercial Total Reportable
 
Commitments Open Interest Commitments
Long Short Spreads Long Short Long Short Long Short
30,419 54,075 4,385 64,838 37,415 99,642 95,875 128,708 29,066 32,833
 
Changes from 8 May 2018 Change in Open Interest Changes from
Long Short Spreads Long Short Long Short Long Short
-2,737 -2,942 747 1,448 1,502 -542 -693 -169 373 524
 
Percent of Open Interest for Each Category of Trader
Long Short Spreads Long Short Long Short   Long Short
23.6% 42.0% 3.4% 50.4% 29.1% 77.4% 74.5%   22.6% 25.5%
 
Number of Traders in Each Category Total Traders  
Long Short Spreads Long Short Long Short    
24 29 16 25 24 58 61 92    
 
Long/Short Commitments Ratios   Long/Short Ratio
Ratio   Ratio Ratio   Ratio
1:1.8   1.7:1 1:1   1:1.1
 
Net Commitment Change  
205  



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Also see:
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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.