The last day of 2010 has started with continued dollar weakness. The British pound has recovered well after yesterday’s sell off following better than expected Halifax House Price Index data. Prices rose by 0.4% vs the expected drop of -0.2%. The GBP/USD looks to be developing some support around the $1.5350 level.

The euro also continues to build momentum with the EUR/USD up 0.5% and the EUR/CHF well off record lows, up 0.80%. The AUD/USD is holding well above parity while the NZD/USD continues its 2 week surge.

Gold is also recovering in the spread betting markets thanks to the weak dollar and looks as those it will close above the $1400 level for 2010.

Fixed Odds Trading Idea – FX:

 
The NZD/USD has been on quite a run in the FX markets recently, but unlike its neighbour the AUD/USD, is not yet a record high levels above $0.8215. The more recent target is the $0.8000 level with the NZD/USD failing to close a month above this level so far.

This time could be different with the NZD/USD having some catching up to do. One way to play this is a HIGHER trade predicting that the NZD/USD will be above $0.80 in 122 days time. If successful, this could return 193%. If your trade is unsuccessful, you will lose 100% of your trade.

And a Quick Look at the Markets From Yesterday Afternoon:

Better than expected unemployment, PMI and New home sales data from the US helped the US dollar record from yesterday morning’s weakness.

The recovery was not uniform however. The dollar was faring better against the yen (USD/JPY), Aussie dollar (AUD/USD) and the British pound (GBP/USD). However there was considerable weakness shown against the euro (EUR/USD) and especially the Swiss franc (USD/CHF). The USD/CHF was plunging into uncharted territory as investors drive money into the Swiss franc.

The British pound was by far the weakest currency yesterday on poor housing data yet again. Analysts are predicting at least a 2.5% fall in 2011. The GBP/USD is down 0.7% with the EUR/GBP up by over 1%.

Spread Betting and CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit. These trading products may not be suitable for all investors so seek independent advice if necessary.

The Financial Fixed Odds update by David Evans, Market Analyst, BetOnMarkets.

This website content does not constitute investment advice. No individual contributor, contributing company, BetOnMarkets nor Online-Spread-Betting.com accept any responsibility for any use that may be made of the content.
 

This morning the US dollar has hit new record lows against two key currencies. AUD/USD hit a fresh record high of $1.2000, but has since reversed slightly, while the USD/CHF has continued its slump down to a new low of SFr0.9417.

Gold is enjoying the dollar weakness and is holding above $1,400. If the precious metal manages to close around these levels, it will be the first time that Gold has managed to close above $1400 for three consecutive days.

The Japanese yen is continuing to regain the ground lost in November, with the USD/JPY heading back towards record lows.

While the action in the forex spread betting markets remains fairly healthy, stock markets are lifeless, even accounting for the festive holiday period.

Fixed Odds Trading Idea – Currencies:

The USD/CHF has hit new record lows today, with the EUR/CHF also making similar benchmarks. The USD/JPY is heading back towards the October lows but is still some way off new records.

One bet idea is to predict that the USD/JPY will hit new record lows by the middle of January. A ONE TOUCH trade with the trigger at ¥80.00 and expiring on the 18th of January could return 122%. If your trade is unsuccessful you will lose 100% of your stake.

Spread Betting and CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit. These trading products may not be suitable for all investors so seek independent advice if necessary.

The Financial Fixed Odds update by David Evans, Market Analyst, BetOnMarkets.

This website content does not constitute investment advice. No individual contributor, contributing company, BetOnMarkets nor Online-Spread-Betting.com accept any responsibility for any use that may be made of the content.
 

The Spread Betting Markets – Last Week:

Volumes were very thin in the run up to Christmas. The FTSE was trading on approximately 1/3rd of normal trading volumes. The FTSE was been determined to grind higher however, with each day ending with the market in positive territory.

The index managed to hit the psychologically important 6000 on Thursday and managed to above that level the following day.

The UK was hit hard by snow last week and, as usual, was unprepared. Therefore, on Monday, we had weather related stocks taking a hit. BA was affected due to the cancellation of flights, and Next the retailer was hit after the consumers were unable to make it to the high street, although they did make a recovery by the end of the day.

Sterling continued to weaken, with data indicating a drop in output for the UK, perhaps indicating the UK recovery could be a rocky road. Wednesday saw Q3 GDP post growth of 0.7%, less that the estimated 0.8%.

BoE minutes had a more hawkish tone to them with fears that inflation may well hit 4% in 2011. It could well be soon that more members look to join Andrew Sentance in requesting a rate rise.

Chief executive of BAA Colin Matthews gave up his bonus in light of the chaos at Heathrow Airport, however this didn’t bring any resolution to the thousands of stranded passengers trying to get back for Christmas.

Costain group put in a bid for Mouchel, which would lead to one of the UK’s leading solutions providers. Rio Tinto put in counter bid in for Australian miner Riversdale, estimated to be $3.9bn.

Looking back, 2010 has been a great year for markets, despite a couple of wobbles.

The Spread Betting Markets – This Week:

As expected, the online spread betting markets this week have been and will likely continue to be fairly quiet, as the FTSE was closed on both Monday and Tuesday. There is a smattering of data, such initial jobless figures and Chicago PMI tomorrow.

Spread betting is a leveraged product. It carries a high level of risk to your capital and, as it is possible to lose more than your initial investment, it may not be suitable for all investors. Therefore, ensure you understand the risks involved and seek independent advice if necessary. The tax treatment of spread bets may be subject to change in the future

Article by Spreadex.

The above should not be construed in any circumstances as a recommendation or offer to sell or recommendation or solicitation of any offer to buy any security or other financial instrument.

Where to Spread Bet on Platinum

You can trade on spread betting markets such as Platinum with spread betting companies like:

• Financial Spreads
• CMC Markets
• Spreadex

To see which companies offer 24 hour trading, new account offers, stop losses and trading charts see Spread Betting Companies.

How to Spread Bet on Platinum

If you decide to spread trade on a commodity such as Platinum then, on visiting a spread trading website like IG Index on Wednesday 15th December, you may have seen a spread of $1,690.0 – $1,700.0.

That means you can spread trade on Platinum to move above $1,700.0 or below $1,690.0.

If you are spread betting, you trade on every unit the market rises or falls. Specifically, for the Platinum market a unit is $0.1 of the commodity’s price movement.

For this instance, you might choose to trade £1 for every $0.1 Platinum rises or falls.

Spread Betting on the Market to Increase

If you were to go long of Platinum at $1,700.0 and the commodity increased then the spread could become $1,711.1 – $1,721.1. If this were the case, you could close your spread bet at $1,711.1.

Profit/Loss = (final level of the market – opening level of the market) x stake per $0.1
Profit/Loss = ($1,711.1 – $1,700.0) x £1 per $0.1 stake
Profit/Loss = $11.1 x £1 per $0.1
Profit/Loss = £111 profit

Markets can also fall, if the market had decreased to, as an example, $1,687.3 – $1,697.3, you might decide to close your trade to limit your losses. Assuming this was the case, you would sell your spread bet at $1,687.3.

Therefore, with the same £1 per $0.1 stake:

Profit/Loss = (final level of the market – opening level of the market) x stake per $0.1
Profit/Loss = ($1,687.3 – $1,700.0) x £1 per $0.1 stake
Profit/Loss = -$12.7 x £1 per $0.1
Profit/Loss = -£127 loss

Spread Betting on the Market to Decrease

One major benefit of placing a spread trade is that investors can sell the markets.

To start with, the spread betting price was $1,690.0 – $1,700.0.

If you were to go short of Platinum at $1,690.0 and the commodity fell then the market might be re-priced at $1,668.5 – $1,678.5. In that case, you might choose to close your trade for a profit at $1,678.5.

Profit/Loss = (opening level of the market – final level of the market) x stake per $0.1
Profit/Loss = ($1,690.0 – $1,678.5) x £1 per $0.1 stake
Profit/Loss = $11.5 x £1 per $0.1
Profit/Loss = £115 profit

Markets can also rise, if the market had risen to, as an example, $1,693.3 – $1,703.3, you might want to close your bet to limit your losses. Therefore, you would buy at $1,703.3.

With the same £1 per $0.1 stake:

Profit/Loss = (opening level of the market – final level of the market) x stake per $0.1
Profit/Loss = ($1,690.0 – $1,703.3) x £1 per $0.1 stake
Profit/Loss = -$13.3 x £1 per $0.1
Profit/Loss = -£133 loss

Platinum (January) market taken as of 15-Dec-10.

Spread Betting Company of the Week

With Financial Spreads you get all the normal benefits of spread betting as well as a range of extra benefits:

• Tight Spreads eg the FTSE 100 Rolling Daily Spread is only 1 point during market hours
• 24 Hour Trading, 5 days a week
• Live charts
• 2,000+ markets
• And more

For further details and to apply for an account see: Financial Spreads.

Spread Betting carries a high level of risk to your capital and you can lose more than your initial investment, it may not be suitable for all investors. Ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved and seek independent financial advice where necessary.

Where to Spread Bet on the Hang Seng

You can trade on spread betting markets such as the Hang Seng with spread betting companies like:

• CapitalSpreads
• CMCMarkets
• Paddy power trader

To see which companies offer 24 hour trading, new account offers, stop losses and trading charts see Spread Betting Companies.

How to Spread Bet on the Hang Seng

If you are going to spread bet on an index like the Hang Seng then, looking at a spread betting website like Financial Spreads on Wednesday 15th December, you may have seen a spread of 22932 – 22972.

That means you can spread trade on the Hang Seng to increase above 22972 or decrease below 22932.

When making a spread bet, investors bet on every unit the market goes up or down; with the Hang Seng market a unit is 1 point of the index’s price movement.

With this example, you could choose to bet £2 for every point the Hang Seng rises or falls.

Betting on the Market to Rise

If you bought the Hang Seng at 22972 and the index rose then the spread could change to 23052 – 23092. In that case, you might decide to close your spread bet at 23052.

Your P&L = (closing price of the market – initial price of the market) x stake per point
Your P&L = (23052 – 22972) x £2 per point stake
Your P&L = 80 points x £2 per point
Your P&L = £160 profit

However, if the market decreased to, for example, 22897 – 22937, you may want to close your trade to limit your losses. If that happened, you would sell your spread bet at 22897.

You would do this with the same £2 per point stake:

Your P&L = (closing price of the market – initial price of the market) x stake per point
Your P&L = (22897 – 22972) x £2 per point stake
Your P&L = -75 points x £2 per point
Your P&L = -£150 loss

Betting on the Market to Fall

One useful benefit of spread trading is that you can short the markets.

When we started this example, the price was 22932 – 22972.

If you were to sell the Hang Seng at 22932 and the index fell then the spread could become 22820 – 22860. Assuming this was the case, you might decide to close your spread bet at 22860.

Your P&L = (initial price of the market – closing price of the market) x stake per point
Your P&L = (22932 – 22860) x £2 per point stake
Your P&L = 72 points x £2 per point
Your P&L = £144 profit

Nevertheless, if the market had increased to, as an example, 22959 – 22999, you might decide to close your bet to limit your losses. If so, you would buy back at 22999.

So, with the same £2 per point stake:

Your P&L = (initial price of the market – closing price of the market) x stake per point
Your P&L = (22932 – 22999) x £2 per point stake
Your P&L = -67 points x £2 per point
Your P&L = -£134 loss

Hang Seng (December) spread betting prices accurate as of 15-Dec-10.

Spread Betting Company of the Week

With Financial Spreads you get all the normal benefits of spread betting as well as a range of extra benefits:

• Tight Spreads eg the FTSE 100 Rolling Daily Spread is only 1 point during market hours
• 24 Hour Trading, 5 days a week
• Live charts
• 2,000+ markets
• And more

For further details and to apply for an account see: Financial Spreads.

Spread Betting carries a high level of risk to your capital and you can lose more than your initial investment, it may not be suitable for all investors. Ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved and seek independent financial advice where necessary.

Where to Spread Bet on the MDAX

You can trade on spread betting markets such as the MDAX with spread betting companies like:

• IG Index
• CMCMarkets
• Paddy power trader

To see which companies offer 24 hour trading, new account offers, stop losses and trading charts see Spread Betting Companies.

How to Spread Bet on the MDAX

If you are going to spread trade on an index like the MDAX then, on visiting a spread betting website like Paddypowertrader on Wednesday 15th December, you may have seen a spread of 9834 – 9864.

As a result, you can bet on the MDAX to increase higher than 9864 or decrease lower than 9834.

When spread betting, you bet on every unit the market rises or falls. In the case of the MDAX market a unit is 1 point of the index’s price movement.

For instance, you could decide to spread bet £2 for every point the MDAX goes up or down.

Spread Betting on the Market to Rise

If you were to buy the MDAX at 9864 and the index increased then the spread could become 9928 – 9958. If this were the case, you might want to close your spread bet for a profit by selling at 9928.

P&L = (settlement price of the market – initial price of the market) x stake per point
P&L = (9928 – 9864) x £2 per point stake
P&L = 64 points x £2 per point
P&L = £128 profit

Of course, if the market had moved down to 9805 – 9835, you might want to close your bet to limit your losses. In that case, you would sell your trade at 9805.

So, with the same £2 per point stake:

P&L = (settlement price of the market – initial price of the market) x stake per point
P&L = (9805 – 9864) x £2 per point stake
P&L = -59 points x £2 per point
P&L = -£118 loss

Spread Betting on the Market to Fall

One benefit of using a spread bet is that investors can sell the markets.

At the beginning of this example, the market was priced at 9834 – 9864.

If you were to go short of the MDAX at 9834 and the index decreased then the spread could change to 9746 – 9776. If that were to happen, you might decide to take your profits by closing your spread trade at 9776.

P&L = (initial price of the market – settlement price of the market) x stake per point
P&L = (9834 – 9776) x £2 per point stake
P&L = 58 points x £2 per point
P&L = £116 profit

Financial markets also move up, if the market were to rise up to, as an example, 9857 – 9887, you may want to close your trade to restrict your losses. Assuming this was the case, you would buy your spread bet at 9887.

Therefore, with the same £2 per point stake:

P&L = (initial price of the market – settlement price of the market) x stake per point
P&L = (9834 – 9887) x £2 per point stake
P&L = -53 points x £2 per point
P&L = -£106 loss

MDAX (March) spread betting prices accurate as of 15-Dec-10.

Spread Betting Company of the Week

With Financial Spreads you get all the normal benefits of spread betting as well as a range of extra benefits:

• Tight Spreads eg the FTSE 100 Rolling Daily Spread is only 1 point during market hours
• 24 Hour Trading, 5 days a week
• Live charts
• 2,000+ markets
• And more

For further details and to apply for an account see: Financial Spreads.

Spread Betting carries a high level of risk to your capital and you can lose more than your initial investment, it may not be suitable for all investors. Ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved and seek independent financial advice where necessary.

Where to Spread Bet on Lean Hogs

You can trade on spread betting markets such as Lean Hogs with spread betting companies like:

• Capital Spreads
• City Index
• GFT

To see which companies offer 24 hour trading, new account offers, stop losses and trading charts see Spread Betting Companies.

How to Spread Bet on Lean Hogs

Should you decide to spread trade on a commodity such as Lean Hogs then, looking at a spread trading site like Capital Spreads on Wednesday 15th December, you may have seen a spread of $76.44 – $76.59.

Therefore, you could spread trade on Lean Hogs to move higher than $76.59 or to move lower than $76.44.

When making a spread bet, investors trade on every unit the market rises or falls. With the Lean Hogs market a unit is $0.01 of the commodity’s price movement.

For example, you might decide to trade £2 for every $0.01 Lean Hogs goes up or down.

Buying – Spread Betting on the Market to Go Up

If you were to buy Lean Hogs at $76.59 and the commodity went up then you might see the spread move to $77.28 – $77.43. If this were the case, you might decide to close your trade at $77.28.

Profit/Loss = (closing value of the market – initial value of the market) x stake per $0.01
Profit/Loss = ($77.28 – $76.59) x £2 per $0.01 stake
Profit/Loss = $0.69 x £2 per $0.01
Profit/Loss = £138 profit

The markets can of course fall, if the market had moved down to $75.98 – $76.13, you might decide to close your trade to restrict your losses. Therefore, you would sell the market at $75.98.

You would close your bet with the same £2 per $0.01 stake:

Profit/Loss = (closing value of the market – initial value of the market) x stake per $0.01
Profit/Loss = ($75.98 – $76.59) x £2 per $0.01 stake
Profit/Loss = -$0.61 x £2 per $0.01
Profit/Loss = -£122 loss

Selling – Spread Betting on the Market to Go Down

An advantage of using a spread bet is that investors can short the markets.

When we began this example, the market was $76.44 – $76.59.

If you were to sell Lean Hogs at $76.44 and the commodity fell then the spread could move to $75.67 – $75.82. If that were to happen, you might choose to close your trade for a profit by buying at $75.82.

Profit/Loss = (initial value of the market – closing value of the market) x stake per $0.01
Profit/Loss = ($76.44 – $75.82) x £2 per $0.01 stake
Profit/Loss = $0.62 x £2 per $0.01
Profit/Loss = £124 profit

Of course, if the market had moved up to, for example, $76.84 – $76.99, you might decide to close your trade to prevent further losses. In that case, you would buy the market at $76.99.

Therefore, with the same £2 per $0.01 stake:

Profit/Loss = (initial value of the market – closing value of the market) x stake per $0.01
Profit/Loss = ($76.44 – $76.99) x £2 per $0.01 stake
Profit/Loss = -$0.55 x £2 per $0.01
Profit/Loss = -£110 loss

Lean Hogs (February) prices correct as of 15-Dec-10.

Spread Betting Company of the Week

With Financial Spreads you get all the normal benefits of spread betting as well as a range of extra benefits:

• Tight Spreads eg the FTSE 100 Rolling Daily Spread is only 1 point during market hours
• 24 Hour Trading, 5 days a week
• Live charts
• 2,000+ markets
• And more

For further details and to apply for an account see: Financial Spreads.

Spread Betting carries a high level of risk to your capital and you can lose more than your initial investment, it may not be suitable for all investors. Ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved and seek independent financial advice where necessary.

In the FX spread betting markets this morning’s main theme is money flowing into the Japanese yen with the USDJPY, EURJPY and GBPJPY down by around 0.7%.

The pound and euro have stabilised against the dollar, but are still falling behind the Australian and New Zealand dollar which are powering ahead.

The Strength of the AUDUSD and NZDUSD is in part down to the increasing demand for raw commodities with oil prices coming close to a 26 month high yesterday.

Fixed Odds Trading Idea – Gold:

One trading idea for 2011 is to look for a continuation of the main trends of 2010; namely weakness in the British pound, especially compared to the Japanese yen.

The economic recovery is wobbly, as is the ruling coalition. Recent economic data has been coming in below estimates and this is before austerity measures.

There is the potential for the pound to weaken further in 2011 and the GBPJPY could be a way to play this.

The record low for the GBPJPY is ¥118.85, around 850 pips below current levels.

A ‘Fixed Odds One Touch’ trade predicting that the GBPJPY will drop by more than this and hit ¥115.00 at some point in the next 6 months could return 172% if successful.

Editors note: If you lose this trade you will lose 100% of your stake.

And a Quick Look at the Markets From Yesterday Afternoon:

It’s not been a good week for Britain’s ruling coalition, not only is a senior member of the cabinet engaging in a covert war, the economic data continues to come in below already depressed expectations. Earlier this week public borrowing was higher than expected and today the current account balance came in at -£9.6bn with GDP rising by a less than expected amount.

The GBPUSD was down 0.5% while the GBPJPY was down 0.9%.

The euro continued to weaken against the Swiss franc, making a new record low, but while the EURCHF hit the headlines, the GBPCHF was falling by a greater amount today.

Spread Betting and CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit. These trading products may not be suitable for all investors so seek independent advice if necessary.

The Financial Fixed Odds update by David Evans, Market Analyst, BetOnMarkets.

This website content does not constitute investment advice. No individual contributor, contributing company, BetOnMarkets nor Online-Spread-Betting.com accept any responsibility for any use that may be made of the content.
 

City Index has announced the release of a new version of its iPhone spread betting and CFD trading application, City Trading.

The application was first launched in October 2009 and was claimed to be the first iPhone FX trading app to provide clients with full and secure access to their trading accounts on the go.

The latest iteration is available to download for free from Apple.

Joshua Raymond, market strategist at City Index, commented, “Since the release of City Trading, the percentage of total trades placed on our mobile platforms has risen from less than 3% to 15%, which underlines just what an impact the City Trading app has had on traders behaviour.

“With the addition of the most powerful live charting package available, as well as newsfeeds from Dow Jones Newswires, we hope that clients will continue to benefit from the most comprehensive mobile dealing offering on the market”.

City Index plans to expand the app to cover Blackberry, Java and Windows Mobile devices soon.

For more details about an account see City Index.

Contracts for differences (“CFD”) trading and spread betting carries a high level of risk to your capital with the possibility of losing more than your initial investment and may not be suitable for all investors. Ensure you fully understand the risks involved and seek independent advice if necessary.

Commentary by City Index.

This material should not be construed in any circumstances as a recommendation or offer to sell or recommendation or solicitation of any offer to buy any security or other financial instrument by City Index Limited (“City Index”) or Online-Spread-Betting.com, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. The material is not a personal recommendation and you should seek independent advice as to your suitability to speculate in any related markets..

City Index is a spread betting and CFD provider and is authorised and regulated by the Financial Services Authority (no. 113942) whose head and registered office is Park House, 16 Finsbury Circus, London EC2M 7EB (Registered in England and Wales, no. 1761813).

Last night US stock markets made fresh 2 year highs with the Nasdaq 100 the pick of the bunch thanks to tech heavyweight Apple and the lack of banks.

The FTSE 100 is also enjoying a good 2010 with the weak pound helping to boost the value of overseas earnings.

In FX spread betting, the Swiss franc continues to gather momentum, with the USD/CHF within reach of its record low from October. The EUR/CHF is also making record lows again this morning.

We have a number of important UK announcements today starting with UK current account figures, the release of the minutes from the last MPC meeting and preliminary GDP figures at 09.30.

At 15.00 we have existing US home sales with a slight rise expected.

Fixed Odds Trading Idea – Gold:

Gold has been away from the headlines recently which can often be a good buying opportunity. In recent months the precious metal has had a strong correlation with the USD/CHF as investors seek out a safe dollar alternative, but gold has not been rallying as well as the Swissy lately.

There could be some catch up to come from gold in the next week or so and a ‘Higher’ trade could be a way to trade this.

A ‘Financial Fixed Odds Higher’ trade predicting that gold will close above $1400 on the 31st of December could return 146%.

Editors note: If you lose this trade you will lose 100% of your stake.

And a Quick Look at the Markets From Yesterday Afternoon:

Trading volumes were on the low side for stock markets, but the Dow Jones (Wall Street) was still managing to hit levels not seen since Lehman Brothers the worst of the credit crunch carnage (on Monday the S&P 500 made a new 52 day high yet there were more declining shares than advancing shares).

The FTSE 100 had a storming day, hitting a new 52 day high as the weak pound boosts overseas earnings of the global constituents.

The GBP/USD wobbled on the news that UK public sector net borrowing ballooned to 22.8bn.

The EUR/GBP was still contained in a trading range though as the euro is also hindered by worries over Portugal and Irish bank liabilities.

The Swiss franc picked up momentum as investors switched out of the euro and into the safety of the Swiss currency. The EUR/CHF hit a record low yesterday.

Spread Betting and CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit. These trading products may not be suitable for all investors so seek independent advice if necessary.

The Financial Fixed Odds update by David Evans, Market Analyst, BetOnMarkets.

This website content does not constitute investment advice. No individual contributor, contributing company, BetOnMarkets nor Online-Spread-Betting.com accept any responsibility for any use that may be made of the content.