Guide to Dollar/Hungarian Forint Spread Betting

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Financial Spreads: Spread Betting and CFD Trading

Where Can I Spread Bet on USD/HUF?

When using a FinancialSpreads account investors can take a position on a large variety of currencies. For example, investors can trade on USD/HUF as well as the Australian dollar/US dollar, euro/dollar and sterling/dollar.

Where Can I Access Live USD/HUF Prices?

Financial Spreads offers investors real-time prices on 1,000+ markets including USD/HUF and a large variety of other currencies, commodities, shares and stock market indices.

Where Can I Get Live USD/HUF Charts?

With FinancialSpreads you are able to access real-time candlestick charts for USD/HUF and over a thousand other spread betting and CFD markets.

Along with different display styles, the package has a wide range of advanced options:
Sample currency market candlestick chart:

Forex Spread Betting Charts



How to Financial Spread Bet on USD/HUF

For example, let's assume you go on the Financial Spreads website and the live price is:

  USD/HUF Rolling Spot Sell

268.68
Buy

268.88


This is a guide to how the market works:

Spread Trading MarketUSD/HUF Rolling Spot
The Quote268.68 Ft - 268.88 Ft
How the Spread WorksYou can spread bet on the USD/HUF Rolling Spot market to move:

  Spread Betting Above 268.88 Ft, or
  Spread Betting Below 268.68 Ft

This is a 'Rolling' trade so it does not have an expiry date. If you haven't closed your position and the trading session ends then your trade will roll over to the next trading day.

If the trade is rolled over then you will normally either be debited or credited for overnight financing depending on whether you are speculating on the market to go down or up. To learn more see Rolling Spread Bets.
Points (Units) TradedTrades on the USD/HUF market are priced in £x per point.

Where a point is 0.01 Ft of the forex market's price movement.

E.g. if USD/HUF moves 0.50 Ft then you would win/lose 50 times your stake.
Trade SizeYou work out how much you are going to stake per point, e.g. £3 per point, £5 per point, £10 per point etc.
Short Staking ExerciseWith that in mind, if you had a stake of £4 per point and USD/HUF moves by 0.32 Ft (32 points), you would lose/win £4 per point x 32 points = £128.


Worked Spread Trading Example - Taking a Bullish View of USD/HUF

Spread betting on the foreign exchange rate to rise

You Now Choose Whether to Go Long or Short USD/HUF to go:

  Spread Betting Above 268.88 Ft? or
  Spread Betting Below 268.68 Ft?

You Might Decide to Buy   Spread Betting Above 268.88 Ft
You Decide Your Stake Size, Let's Say You Opt For £2 per point
What Happens Now?
  • You gain £2 for each point (0.01 Ft) USD/HUF goes above 268.88 Ft
  • You lose £2 for every point (0.01 Ft) USD/HUF decreases lower than 268.88 Ft
If You Are Going Long of a Market Your Trading P/L = (Closing Price - Opening Price) x stake
 
Example 1
USD/HUF goes higher and the financial spread betting market becomes 269.82 Ft - 270.02 Ft, i.e. Financial Spreads would show:   269.82   270.02
Close and Take Your Profit? You could decide to leave your trade open or close it, i.e. close your trade to lock in your profit. For this example, you decide to settle your trade and sell the market at 269.82 Ft.
Your Trading P/L = (Closing Price - Opening Price) x stake
(269.82 Ft - 268.88 Ft) x £2 per point (£2 per 0.01 Ft)
0.94 Ft x £2 per point
94 points x £2 per point
Your Trading P/L = £188 profit
 
Example 2
USD/HUF goes lower and the spread trading market changes to 268.05 Ft - 268.25 Ft. So you would see this on Financial Spreads:   268.05   268.25
Limit the Loss? At this point, you can choose to keep your trade open or close it, i.e. close your position and limit your loss. In this instance you decide to close your bet by selling the market at 268.05 Ft.
Your Trading P/L = (Closing Price - Opening Price) x stake
(268.05 Ft - 268.88 Ft) x £2 per point (£2 per 0.01 Ft)
-0.83 Ft x £2 per point
-83 points x £2 per point
Your Trading P/L = -£166 loss


Worked Example - Taking a Bearish View of USD/HUF

Financial spread trading on the foreign exchange rate to fall

You Decide to Buy or Sell USD/HUF to push:

  Spread Betting Above 268.88 Ft? or
  Spread Betting Below 268.68 Ft?

Let's Say You Choose to Sell   Spread Betting Below 268.68 Ft
You Decide How Much to Risk, Opting for £1 per point
What Now?
  • You lose £1 for every point (0.01 Ft) USD/HUF moves above 268.68 Ft
  • You gain £1 for every point (0.01 Ft) USD/HUF falls lower than 268.68 Ft
When Betting on a Market to Fall Your Trading P/L = (Opening Price - Closing Price) x stake
 
Example 3
USD/HUF falls and the market is revised and is set at 267.12 Ft - 267.32 Ft, so you'd see this on Financial Spreads:   267.12   267.32
Take a Profit? You can opt to leave your bet open or close it to lock in a profit. In this case you decide to close your trade by buying the market at 267.32 Ft.
Your Trading P/L = (Opening Price - Closing Price) x stake
(268.68 Ft - 267.32 Ft) x £1 per point (£1 per 0.01 Ft)
1.36 Ft x £1 per point
136 points x £1 per point
Your Trading P/L = £136 profit
 
Example 4
USD/HUF pushes higher and the spread betting market moves to 269.69 Ft - 269.89 Ft, i.e. on Financial Spreads you'd see:   269.69   269.89
Time to Restrict the Loss?You can choose to leave your spread bet open or close it to restrict your losses. For this example, you choose to close your trade by buying at 269.89 Ft.
Your Trading P/L = (Opening Price - Closing Price) x stake
(268.68 Ft - 269.89 Ft) x £1 per point (£1 per 0.01 Ft)
-1.21 Ft x £1 per point
-121 points x £1 per point
Your Trading P/L = -£121 loss

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

Financial Spreads gives traders the chance to test new ideas by using a free Practice Account on spread betting and CFD markets like USD/HUF.

The Practice Account doesn't just offer the market above; you can also practice trading on a wide variety of FX pairs, stocks, commodity markets and index markets.

Open a Spread Betting and CFD Trading Demo Account



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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.