You Are Here: LearnMoney.co.uk > Spread Betting Section > The Different Spread Bet Markets - Currencies - Page 1 of 4
...Home Page...|...Financial Yellow Pages...|...About LearnMoney.co.uk...|...Contact Us...|
Navigation
Spread Betting Section
The Different Spread Bet Markets
Page 1 - Currencies
CFDs Section
Options Section

Spread Betting Section

Spread Bet Markets - Currencies (Page 1 of 4)

Page 1 : Page 2 : Page 3 : Page 4

Spread betting companies offer a wide range of markets to take advantage of currency movements. The spread bets are normally split into two different markets, Spot and those based on the CME (Chicago Mercantile Exchange) futures.

SPOT Currencies

Spot currencies are the cash rates that you'll see on the news and internet sites such as Yahoo Money. Spread betters trade these when they generally have a short term outlook of currency movements.

Theoretically it should be possible to trade almost any spot currency cross rate with your spread betting broker but the popular ones are listed below;

MAJOR FX CROSS RATES
Euro/US Dollar Euro/Sterling Sterling/Yen
Sterling/US Dollar Euro/Yen Swiss Franc/Yen
US Dollar/Swiss Franc Euro/Swiss Franc US Dollar/Can.Dollar
US Dollar/Yen Sterling/Swiss Franc Aus.Dollar/US Dollar

A Spot Currency Example - Euro/US Dollar

  • You are bearish of the Euro against the US Dollar and are quoted a spot rate of 110.10 - 110.20
  • You decide to risk £5 a point and therefore sell the spread short at 110.10
  • Your market view is correct and at around 6pm London time you decide to take your profit
  • The quote is now 109.40-109.50 and you cover your short position by paying the offer price of 109.50
  • Profit is therefore 60 points x £5, or £300 Tax Free

If you're new here, you may want to subscribe to our monthly newsletter - see the latest issue. We never send spam or marketing emails and employ a strict privacy policy. Every email comes with an unsubscribe link.

Thanks for visiting!

FREE Monthly Newsletter
The latest market views, ideas and investment strategies.
Concentrates on informing and educating rather than marketing
See the latest issue
We respect your privacy. Simple to unsubscribe


Sign Up Below

© 2008 LearnMoney.co.uk Ltd. All rights reserved

The information on the LearnMoney.co.uk website has been compiled from sources believed to be reliable, but is not warranted to be accurate or complete.
All recommendations and comments are provided for general interest only and should not be construed as personal investment advice.
Professional advice should always be sought.
The price of securities and any income from them can go down as well as up.
Past performance of a security or market is not necessarily indicative of future trends.
Any opinions and recommendations on LearnMoney.co.uk are given in good faith, but without legal responsibility and are subject to change without notice.