Guide to Dollar/Yen Spread Betting

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Financial Spreads: Spread Betting and CFD Trading

Losses can exceed deposits

Where Can I Spread Bet on USD/JPY?

With FinancialSpreads investors can take a position on an array of forex rates. E.g. USD/JPY as well as the sterling/dollar, sterling/Japanese yen and euro/Swiss franc.

Where Can I Access Live USD/JPY Prices?

When trading with a Financial Spreads account investors are able to speculate on over 1,000 real time prices like USD/JPY and a wide variety of other foreign exchange, commodities, stock market indices and shares prices.

Where Can I Get Live USD/JPY Charts?

When using a FinancialSpreads account clients can look at real-time charts for USD/JPY and more than 1,000 other financial spread betting and CFD markets.

Along with several display styles, the package comes with an array of advanced functions:
Sample currency trading candlestick chart:

Forex Spread Betting Charts



How to Spread Bet on USD/JPY

For example, let's say you go on the FinancialSpreads site and the current price is:

  USD/JPY Rolling Spot Sell

118.973
Buy

118.980


Here's an example of how it works.

Market:USD/JPY Rolling Spot
The Spread Betting Price:¥118.973 - ¥118.980
What This Means:Now you can bet on the USD/JPY Rolling Spot market to push:

  Spread Betting Above ¥118.980, or
  Spread Betting Below ¥118.973

This is a Rolling trade and so there is no settlement date for this trade. If you decide not to close your position and the session ends then your position will roll over into the next session.

Note that if the trade is rolled over then you will normally either be charged or receive interest for overnight financing based upon whether you are speculating on the market to decrease or increase. For more details see Rolling Spread Bets.
Units (Points) Traded:Trades on the USD/JPY market are priced in £x per point.

Where a point is ¥0.010 of the currency pair's price movement.

E.g. if USD/JPY moves by ¥0.450 then you would lose/win 45 times your stake.
Trade Size:You work out how much you want to stake per point, e.g. £3 per point, £4 per point, £10 per point etc.
Brief Example:As an example, if you chose a stake of £5 per point and USD/JPY moves ¥0.250 (25 points), you would gain or lose £5 per point x 25 points = £125.


Spread Trading Example - Taking a Long Position on USD/JPY

Spread betting on the currency pair to rise in value

You Decide to Buy or Sell: USD/JPY going:

  Spread Betting Above ¥118.980? or
  Spread Betting Below ¥118.973?

You Might Want to Buy:   Spread Betting Above ¥118.980
You Select Your Stake Size, Let's Say You Choose: £3 per point
So What Happens Now?
  • You make £3 for each point (¥0.010) USD/JPY goes higher than ¥118.980
  • You will make a loss of £3 for every point (¥0.010) USD/JPY pushes lower than ¥118.980
When You Buy a Market Your P/L = (Settlement Price - Opening Price) x stake
 
Trading Situation 1
USD/JPY goes higher and the spread trading market is adjusted and moved to ¥119.515 - ¥119.522, i.e.   119.515   119.522
Time to Lock in a Profit? At this point, you may opt to let your bet run or close it for a profit. In this case you choose to settle your bet by selling the market at ¥119.515.
Your P/L = (Settlement Price - Opening Price) x stake
(¥119.515 - ¥118.980) x £3 per point (£3 per ¥0.010)
¥0.535 x £3 per point
53.5 points x £3 per point
Your P/L = £160.50 profit
 
Trading Situation 2
USD/JPY drops and the market is moved to ¥118.385 - ¥118.392, i.e. on Financial Spreads you would see:   118.385   118.392
Restrict the Loss? At this point, you may decide to keep your trade open or close it in order to restrict your loss. For this example, you decide to close your trade by selling at ¥118.385.
Your P/L = (Settlement Price - Opening Price) x stake
(¥118.385 - ¥118.980) x £3 per point (£3 per ¥0.010)
-¥0.595 x £3 per point
-59.5 points x £3 per point
Your P/L = -£178.50 loss


Spread Betting Example - Selling USD/JPY

Financial spread trading on the currency pair to move down

You Decide Whether to Go Long or Short: USD/JPY moving:

  Spread Betting Above ¥118.980? or
  Spread Betting Below ¥118.973?

You Might Want to Go Short:   Spread Betting Below ¥118.973
You Select Your Stake, Let's Assume You Opt For: £2 per point
So What Next?
  • You will make a loss of £2 for every point (¥0.010) USD/JPY pushes higher than ¥118.973
  • You make £2 for every point (¥0.010) USD/JPY goes lower than ¥118.973
If You Are Betting on a Market to Go Down Your P/L = (Opening Price - Settlement Price) x stake
 
Trading Situation 3
USD/JPY decreases and the financial spread betting market adjusts and moves to ¥118.297 - ¥118.304, so you would see:   118.297   118.304
Close and Take a Profit? At this point, you may decide to leave your trade open or close it and take your profit. In this example you decide to close your bet and buy the market at ¥118.304.
Your P/L = (Opening Price - Settlement Price) x stake
(¥118.973 - ¥118.304) x £2 per point (£2 per ¥0.010)
¥0.669 x £2 per point
66.9 points x £2 per point
Your P/L = £133.80 profit
 
Trading Situation 4
USD/JPY rises and the spread betting market changes to ¥119.710 - ¥119.717. So you'd see this on Financial Spreads:   119.710   119.717
Close and Limit Your Loss?You may decide to leave your spread bet open or close it, i.e. close your position and limit your losses. For this example, you decide to close your bet and buy at ¥119.717.
Your P/L = (Opening Price - Settlement Price) x stake
(¥118.973 - ¥119.717) x £2 per point (£2 per ¥0.010)
-¥0.744 x £2 per point
-74.4 points x £2 per point
Your P/L = -£148.80 loss

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

FinancialSpreads offers investors the chance to put one's trading skills to the test by using a free Practice Account, markets include USD/JPY.

The Demo Account is not restricted to the above market; investors can practice on a range of stocks, indices, commodity markets and forex pairs.


Japanese Yen Commitments of Traders Report - 28 Nov 2017


Futures Only Positions, CME , Code 97741, (Contracts of ¥12,500,000)

Reporting Firms Non-Reportable Positions
Non-Commercial
Commercial Total Reportable
 
Commitments Open Interest Commitments
Long Short Spreads Long Short Long Short Long Short
39,793 150,433 7,628 178,434 47,467 225,855 205,528 244,536 18,681 39,008
 
Changes from 21 Nov 2017 Change in Open Interest Changes from
Long Short Spreads Long Short Long Short Long Short
-4,589 -16,551 -623 -13,291 2,523 -18,503 -14,651 -16,483 2,020 -1,832
 
Percent of Open Interest for Each Category of Trader
Long Short Spreads Long Short Long Short   Long Short
16.3% 61.5% 3.1% 73.0% 19.4% 92.4% 84.0%   7.6% 16.0%
 
Number of Traders in Each Category Total Traders  
Long Short Spreads Long Short Long Short    
23 39 19 32 39 64 90 117    
 
Long/Short Commitments Ratios   Long/Short Ratio
Ratio   Ratio Ratio   Ratio
1:3.8   3.8:1 1.1:1   1:2.1
 
Net Commitment Change  
11,962  



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