Sterling/Yen Spread Betting Guide
Where to Spread Bet on Sterling/Yen
You can trade FX spread betting markets such as Sterling/Yen with spread betting companies like:
How to Spread Bet on Sterling/Yen
If you decide to spread bet on a foreign exchange pair such as the Sterling/Yen then, looking at a spread trading site like FinancialSpreads.com, you might find a spread betting price of ¥133.62 – ¥133.70.
That means you can spread trade on the Sterling/Yen to go above ¥133.70 or below ¥133.62.
If you are spread trading, you bet on every unit the market rises or falls. With the Sterling/Yen market a unit is ¥0.01 of the forex pair’s price movement.
With this example, you could choose to spread bet £2 for every ¥0.01 the Sterling/Yen rises or falls.
Spread Betting on Sterling/Yen to Rise
If you bought the Sterling/Yen at ¥133.70 and the forex pair went up then the spread could change to ¥134.44 – ¥134.52. If that were to happen, you could close your trade for a profit, if so you would sell at ¥134.44.
P&L = (final price of the market – opening price of the market) x stake per ¥0.01
P&L = (¥134.44 – ¥133.70) x £2 per ¥0.01 stake
P&L = ¥0.74 x £2 per ¥0.01
P&L = £148 profit
Financial markets also move down, if the market had decreased to, for example, ¥133.03 – ¥133.11, you might want to close your spread bet to limit your losses. In that case, you would sell your spread bet at ¥133.03.
So, with the same £2 per ¥0.01 stake:
P&L = (final price of the market – opening price of the market) x stake per ¥0.01
P&L = (¥133.03 – ¥133.70) x £2 per ¥0.01 stake
P&L = -¥0.67 x £2 per ¥0.01
P&L = -£134 loss
Spread Betting on Sterling/Yen to Fall
A benefit of spread betting is that you can short the markets.
At the beginning of this example, the spread betting price was ¥133.62 – ¥133.70.
If you were to sell the Sterling/Yen at ¥133.62 and the forex pair decreased then the spread might become ¥132.84 – ¥132.92. If so, you might want to close your bet for a profit by buying at ¥132.92.
P&L = (opening price of the market – final price of the market) x stake per ¥0.01
P&L = (¥133.62 – ¥132.92) x £2 per ¥0.01 stake
P&L = ¥0.70 x £2 per ¥0.01
P&L = £140 profit
Nevertheless, if the market had moved up to ¥134.17 – ¥134.25, you might want to close your trade to prevent further losses. If this were the case, you would buy your spread bet at ¥134.25.
Therefore, with the same £2 per ¥0.01 stake:
P&L = (opening price of the market – final price of the market) x stake per ¥0.01
P&L = (¥133.62 – ¥134.25) x £2 per ¥0.01 stake
P&L = -¥0.63 x £2 per ¥0.01
P&L = -£126 loss
Sterling/Yen Rolling Daily spread betting prices accurate as of 13-Aug-10.
FX Spread Betting Guide
- Where can I Spread Bet on FX Markets?
- Where can I find Real-time Spread Betting Prices for FX Markets?
- Where can I find Live Charts / Candlestick Charts for FX Markets?
- How do you Spread Bet on FX Markets to Go Up?
- How do you Spread Bet on FX Markets to Go Down?
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.
