AUD/NZD Spread Betting

AUD/NZD Spread Betting

AUD/NZD Spread Betting Guide

arrow_forwardLive AUD/NZD Chart
arrow_forwardLive AUD/NZD Prices
arrow_forwardWhere to Spread Bet on AUD/NZD
arrow_forwardHow to Spread Bet on AUD/NZD


Live AUD/NZD Chart and Prices



Where Can I Spread Bet on AUD/NZD?

Most FCA regulated spread betting companies offer prices and live charts on FX markets including:

navigate_beforeComparison Scroll navigate_next
Company Forex
Markets?
Forex Min
Stake
Mobile
Apps
Guaranteed Stop Free If Not Triggered? Inactivity Fee Trading Offer Apply
Financial Spreads Review check_box £0.50 check_boxiOS
check_boxAndroid
check_box £0 check_box Apply

Review
City Index Review check_box £0 check_boxiOS
check_boxAndroid
cancel £0 cancel Apply

Review
ETX Capital Review check_box £0.50 check_boxiOS
check_boxAndroid
cancel £15 cancel Apply

Review
IG Review check_box £1-5 check_boxiOS
check_boxAndroid
check_boxWindows
check_box £12 cancel Apply

Review


How to Spread Bet on AUD/NZD

Let’s suppose you are considering spread trading on AUD / NZD, so you go on a spread trading website, such as Tradefair, and get the current spread at:

AUD / NZD Rolling Daily: NZ$1.28412 – NZ$1.28512

Here is what happens.

The Spread Trading Market AUD / NZD Rolling Daily
Quote (The Spread) NZ$1.28412 – NZ$1.28512
How the Market Works Now you can spread bet on the AUD / NZD Rolling Daily market to push:

  arrow_upward  Above NZ$1.28512, or
  arrow_downward  Below NZ$1.28412

This is a Rolling Daily spread betting market and so there is no settlement date for this trade. If you haven’t closed your trade and the trading session ends then your trade will roll over to the next trading session.

Note that if a trade does roll over then you will normally either be charged or receive a small fee for overnight financing depending on whether you are betting on the market to increase or decrease.

For further details also see guide to daily spread bets.
Trading Units Spread betting trades on the AUD / NZD market are made in £x per point.

Where a point is NZ$0.00010 of the FX market’s price movement.

E.g. if AUD / NZD changes by NZ$0.00450 then you would win or lose 45 multiples of your stake.
Stake (Trade Size) You decide how much you would like to trade per point, e.g. £1 per point, £5 per point, £8 per point etc.
Staking Example If, for example, you had a stake of £4 per point and AUD / NZD moves by NZ$0.00220 (22 points), you would lose/win £4 per point x 22 points = £88.


Fully Worked Spread Betting Example | Buying AUD / NZD

Spread betting on the forex market to move up in value

You Select Whether to Go Long or Short AUD / NZD to go:

  arrow_upward  Above NZ$1.28512? or
  arrow_downward  Below NZ$1.28412?

Let’s Say You Choose to Go Long   arrow_downward  Above NZ$1.28512
You Decide Your Stake, Let’s Assume You Opt For £2 per point
So What Happens Next?
  • You will win £2 for each point (NZ$0.00010) AUD / NZD goes higher than NZ$1.28512
  • Your trade loses £2 for every point (NZ$0.00010) AUD / NZD falls lower than NZ$1.28512
When Betting on a Market to Go Up Your Trading Profits/Losses = (Final Value – Initial Value) x stake per point
 
Situation 1 AUD / NZD rises and the spread trading market is revised and moved to NZ$1.29155 – NZ$1.29255.
Lock in Your Profit? You may opt to leave your bet open or close it and lock in your profit. For this example, you opt to close your position and sell the market at NZ$1.29155.
Your Trading Profits/Losses = (Final Value – Initial Value) x stake per point
(NZ$1.29155 – NZ$1.28512) x £2 per point (£2 per NZ$0.00010)
NZ$0.00643 x £2 per point
64.3 points x £2 per point
Your Trading Profits/Losses = £128.60 profit
 
Situation 2 AUD / NZD goes lower and the forex spread betting market moves to NZ$1.27953 – NZ$1.28053.
Time to Limit the Loss? You can decide to let your bet run or close it, i.e. close your trade to limit your loss. In this example you opt to close your bet by selling the market at NZ$1.27953.
Your Trading Profits/Losses = (Final Value – Initial Value) x stake per point
(NZ$1.27953 – NZ$1.28512) x £2 per point (£2 per NZ$0.00010)
-NZ$0.00559 x £2 per point
-55.9 points x £2 per point
Your Trading Profits/Losses = -£111.80 loss


Spread Betting Example | Going Short of AUD / NZD

Financial spread trading on the forex market to move lower

You Now Decide to Buy or Sell AUD / NZD to move:

  arrow_upward  Above NZ$1.28512? or
  arrow_downward  Below NZ$1.28412?

You Might Choose to Sell   arrow_downward  Below NZ$1.28412
You Select How Much to Risk, Let’s Assume You Choose £3 per point
So Now What Happens?
  • Your trade loses £3 for every point (NZ$0.00010) AUD / NZD increases higher than NZ$1.28412
  • You will win £3 for every point (NZ$0.00010) AUD / NZD pushes below NZ$1.28412
When You Sell a Market Your Trading Profits/Losses = (Initial Value – Final Value) x stake per point
 
Situation 3 AUD / NZD pushes lower and the financial spread betting market is adjusted and moved to NZ$1.27830 – NZ$1.27930.
Close and Take Your Profit? You can opt to keep your bet open or close it, i.e. close your position to lock in your profit. In this case you decide to close your trade by buying at NZ$1.27930.
Your Trading Profits/Losses = (Initial Value – Final Value) x stake per point
(NZ$1.28412 – NZ$1.27930) x £3 per point (£3 per NZ$0.00010)
NZ$0.00482 x £3 per point
48.2 points x £3 per point
Your Trading Profits/Losses = £144.60 profit
 
Situation 4 AUD / NZD climbs and the spread betting market adjusts and moves to NZ$1.28731 – NZ$1.28831.
Time to Restrict Your Loss?You may choose to leave your spread bet open or close it in order to limit your losses. In this instance you choose to settle your trade and buy at NZ$1.28831.
Your Trading Profits/Losses = (Initial Value – Final Value) x stake per point
(NZ$1.28412 – NZ$1.28831) x £3 per point (£3 per NZ$0.00010)
-NZ$0.00419 x £3 per point
-41.9 points x £3 per point
Your Trading Profits/Losses = -£125.70 loss


AUD / NZD Notes:

  • Spread betting market obtained from Tradefair on 28 February 2012
  • Investors are also able to speculate on AUD / NZD in euros per point and dollars per point


AuthorAlex Turner

Senior Editor, SpreadBetMagazine

Leave a Reply

Be the First to Comment!

Notify of
wpDiscuz