Guide to Dollar/South African Rand Spread Betting

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Financial Spreads: Spread Betting and CFD Trading

Where Can I Spread Bet on USD/ZAR?

Using a FinancialSpreads account clients can take a position on a wide range of exchange rates. These include USD/ZAR but also the GBP/USD, EUR/CHF and USD/JPY.

Where Can I Access Live USD/ZAR Prices?

FinancialSpreads provides investors with real-time prices on more than 1,000 spread betting and CFD markets including USD/ZAR and a wide array of other foreign exchange, shares, commodities and stock market indices.

Where Can I Get Live USD/ZAR Charts?

When using a Financial Spreads account you can look at a professional level charting package for USD/ZAR and over a thousand other spread trading and CFD markets.

As well as several display styles, the package also has a large range of benefits:
Example FX trading chart:

Forex Spread Betting Charts



How to Spread Bet on USD/ZAR

For example, let's suppose that you look at the FinancialSpreads website and see:

  USD/ZAR Rolling Spot Sell

11.716
Buy

11.726


Here's a brief example of how it works...

Spread Trading MarketUSD/ZAR Rolling Spot
Spread Betting PriceR 11.716 - R 11.726
How the Trade WorksNow you can take a position on the USD/ZAR Rolling Spot market going:

  Spread Betting Above R 11.726, or
  Spread Betting Below R 11.716

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

If a trade does roll over then you will normally either be charged or receive a small fee for overnight financing depending upon whether you are betting on the market to go up or down. For more information also see Rolling Spread Bets.
Traded UnitsSpread trades on the USD/ZAR market are priced in £x per point.

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

E.g. if USD/ZAR moves by R 0.045 then you would lose or win 45 times your stake.
StakeYou choose your stake per point, e.g. £2 per point, £4 per point, £20 per point etc.
Quick ExampleWith that in mind, if you went with a stake of £5 per point and USD/ZAR changes by R 0.023 (23 points), you would lose/win £5 per point x 23 points = £115.


Spread Betting Example - Taking a Bullish View of USD/ZAR

Financial spread trading on the forex rate to rise in value

You Work Out Whether to Go Long or Short USD/ZAR to go:

  Spread Betting Above R 11.726? or
  Spread Betting Below R 11.716?

Let's Assume You Buy   Spread Betting Above R 11.726
You Select Your Stake Size, Opting for £3 per point
So What Happens Now?
  • You gain £3 for each point (R 0.001) USD/ZAR pushes above R 11.726
  • Your spread bet loses £3 for every point (R 0.001) USD/ZAR pushes lower than R 11.726
If You Are Buying a Market Your Profits (or Losses) = (Final Price - Opening Price) x stake
 
Example 1
USD/ZAR goes higher and the financial spread betting market is revised and set at R 11.789 - R 11.799, therefore you would see this on Financial Spreads:   11.789   11.799
Close for a Profit? At this point, you may opt to keep your position open or close it to take a profit. In this instance you decide to settle your trade by selling the market at R 11.789.
Your Profits (or Losses) = (Final Price - Opening Price) x stake
(R 11.789 - R 11.726) x £3 per point (£3 per R 0.001)
R 0.063 x £3 per point
63 points x £3 per point
Your Profits (or Losses) = £189 profit
 
Example 2
USD/ZAR falls and the spread betting market becomes R 11.670 - R 11.680. Therefore you'd see this on Financial Spreads:   11.670   11.680
Time to Limit the Loss? You can choose to leave your bet open or close it and limit your loss. In this example you decide to close your position by selling at R 11.670.
Your Profits (or Losses) = (Final Price - Opening Price) x stake
(R 11.670 - R 11.726) x £3 per point (£3 per R 0.001)
R -0.056 x £3 per point
-56 points x £3 per point
Your Profits (or Losses) = -£168 loss


Worked Spread Trading Example - Taking a Bearish View of USD/ZAR

Financial spread betting on the forex rate to move down

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

  Spread Betting Above R 11.726? or
  Spread Betting Below R 11.716?

Let's Say You Go Short   Spread Betting Below R 11.716
You Decide How Much to Risk, Let's Assume You Opt For £2 per point
What Next?
  • Your spread bet loses £2 for every point (R 0.001) USD/ZAR goes above R 11.716
  • You gain £2 for every point (R 0.001) USD/ZAR goes below R 11.716
When Spread Betting on a Market to Go Down Your Profits (or Losses) = (Opening Price - Final Price) x stake
 
Example 3
USD/ZAR drops and the spread trading market is revised and is set at R 11.627 - R 11.637. So you'd see this on Financial Spreads:   11.627   11.637
Take Your Profit? You could opt to let your trade run or close it, i.e. close your trade to lock in your profit. In this instance you opt to close your bet by buying at R 11.637.
Your Profits (or Losses) = (Opening Price - Final Price) x stake
(R 11.716 - R 11.637) x £2 per point (£2 per R 0.001)
R 0.079 x £2 per point
79 points x £2 per point
Your Profits (or Losses) = £158 profit
 
Example 4
USD/ZAR pushes higher and the market is revised and changes to R 11.776 - R 11.786, so you would see this on Financial Spreads:   11.776   11.786
Restrict the Loss?You could opt to keep your trade open or close it in order to limit your loss. In this instance you choose to settle your bet and buy at R 11.786.
Your Profits (or Losses) = (Opening Price - Final Price) x stake
(R 11.716 - R 11.786) x £2 per point (£2 per R 0.001)
R -0.070 x £2 per point
-70 points x £2 per point
Your Profits (or Losses) = -£140 loss

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

FinancialSpreads.com provide a Demo Account where you are able to review live charts, apply trading orders, practice trading and test new ideas etc. on markets including USD/ZAR.

The Demo Account isn't limited to the above market; investors can also gain experience using a large range of shares, stock market indices, commodity markets and forex pairs.

Open a Spread Betting / CFDs Demo Account



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Also see:
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