Rolling a Spread Bet Spot Currency

• In the example on the previous page assume that at the end of the day you feel that the Euro is likely to fall further the following day
• You instruct your spread bet broker to rollover the short position into the following day's daily spread
• The spread broker closes the current short trade (i.e. buys it back) at the closing price (normally 8pm) of 109.25 and then simultaneously initiates a new short position at 109.21 (close minus spread)
• The following day the Euro/Dollar opens unchanged before slipping slightly in mid-morning trading
• The market is dull and so taking the final profit seems logical
• The spread betting broker quotes 108.90-109.00 and you pay the offer, realising a total profit as follows;

Day	Trade	Price	Action	P&L
Day 1	Sell short £5 of Euro/$	131	Initial short trade (daily bet)	n/a
Day 1	Buy to cover £5 of Euro/$	123	Part 1 of the rollover (daily bet)	£425
Day 1	Sell short £5 of Euro/$	122.7	Part 2 of the rollover (daily bet)	n/a
Day 2	Buy to cover £5 of Euro/$	120.5	Cover short position, now flat	£105
			Total Profit..	£530

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