EUR/GBP Spread Betting

EUR/GBP Spread Betting

EUR/GBP Spread Betting Guide

arrow_forwardLive EUR/GBP Chart
arrow_forwardLive EUR/GBP Prices
arrow_forwardWhere to Spread Bet on EUR/GBP
arrow_forwardHow to Spread Bet on EUR/GBP
arrow_forwardHow to Spread Bet on GBP/EUR


Live EUR/GBP Chart and Prices



Where Can I Spread Bet on EUR/GBP?

Most FCA regulated spread betting firms offer live prices and charts on forex markets like EUR/GBP.

See the FX comparison table below.


EUR/GBP Spread Betting Comparison

navigate_beforeComparison Scroll navigate_next
Company Forex Min
Stake
EUR/USD
Spread
GBP/USD
Spread
EUR/GBP
Spread
USD/JPY
Spread
AUD/USD
Spread
Apply
Financial Spreads Review £0.50 0.7 0.9 0.8 0.8 0.8 Apply

Review
City Index Review £0 Variable Variable Variable Variable Variable Apply

Review
ETX Capital Review £0.50 0.88†† 1.19†† 1.32†† 1.38†† 1.14†† Apply

Review
IG Review £1-5 Variable Variable Variable Variable Variable Apply

Review


How to Spread Bet on EUR/GBP

For example, let’s say you are thinking of trading on the EUR / GBP forex market, so you look at a platform, like Tradefair, and see that they are offering the current price:

EUR / GBP Rolling Daily: £0.85301 – £0.85311

This is an example of how it works:

Market EUR / GBP Rolling Daily
The Spread £0.85301 – £0.85311
What This Means Now you can bet on the EUR / GBP Rolling Daily market to push:

  arrow_upward  Above £0.85311, or
  arrow_downward  Below £0.85301

This is a ‘Rolling Daily’ trade which means that there is no closing date for this spread bet. If you don’t close your position and the session ends then your trade will roll over to the next trading session.

Note that if a trade is rolled over then you will either be charged or receive a small fee for overnight financing based on the direction of your trade.

For further information also see Rolling Spread Bets.
Points (Units) Traded Bets on the EUR / GBP market are priced in £x per point.

Where a point is £0.00010 of the forex market’s price movement.

E.g. if EUR / GBP changes by £0.00450 then you would win/lose 45 times your stake.
Stake Size per Unit You choose how much you are going to risk per point, e.g. £1 per point, £2 per point, £4 per point, £10 per point etc.
Brief Staking Exercise If, as an example, you chose a stake of £3 per point and EUR / GBP moves by £0.00230 (23 points), you would win/lose £3 per point x 23 points = £69.


Spread Betting Example | Buying EUR / GBP

Spread trading on the forex market to increase

You Choose Whether to Go Long or Short EUR / GBP to move:

  arrow_upward  Above £0.85311? or
  arrow_downward  Below £0.85301?

Let’s Say You Go Long   arrow_downward  Above £0.85311
You Choose How Much to Risk, Let’s Assume You Opt For £4 per point
What Happens Now?
  • You gain £4 for every point (£0.00010) EUR / GBP moves above £0.85311
  • You lose £4 for each point (£0.00010) EUR / GBP moves below £0.85311
If You Are Spread Betting on a Market to Go Up Your Trading P&L = (Final Price – Initial Price) x stake per point
 
Situation 1 EUR / GBP climbs and the forex market is revised and is set at £0.85610 – £0.85620.
Take a Profit? You could choose to leave your spread bet open or close it, i.e. close your trade to lock in a profit. For this example, you decide to settle your trade by selling the market at £0.85610.
Your Trading P&L = (Final Price – Initial Price) x stake per point
(£0.85610 – £0.85311) x £4 per point (£4 per £0.00010)
£0.00299 x £4 per point
29.9 points x £4 per point
Your Trading P&L = £119.60 profit
 
Situation 2 EUR / GBP slips and the spread betting market is adjusted to £0.84970 – £0.84980.
Restrict Your Loss? At this point, you may decide to leave your spread bet open or close it in order to limit your loss. In this example you opt to close your bet by selling at £0.84970.
Your Trading P&L = (Final Price – Initial Price) x stake per point
(£0.84970 – £0.85311) x £4 per point (£4 per £0.00010)
-£0.00341 x £4 per point
-34.1 points x £4 per point
Your Trading P&L = -£136.40 loss


Spread Betting Example | Selling the Euro/Pound Sterling Rate

Financial spread betting on the forex market to decrease

You Select Whether to Go Long or Short EUR / GBP moving:

  arrow_upward  Above £0.85311? or
  arrow_downward  Below £0.85301?

Let’s Say You Sell   arrow_downward  Below £0.85301
You Select Your Stake Size, Selecting £2 per point
Now What?
  • You lose £2 for each point (£0.00010) EUR / GBP goes higher than £0.85301
  • You gain £2 for each point (£0.00010) EUR / GBP goes lower than £0.85301
If You Go Short With a Spread Bet Your Trading P&L = (Initial Price – Final Price) x stake per point
 
Situation 3 EUR / GBP falls and the spread trading market is moved to £0.84813 – £0.84823.
Close and Take a Profit? You can opt to keep your spread bet open or close it and take your profit. For this example, you choose to settle your position by buying at £0.84823.
Your Trading P&L = (Initial Price – Final Price) x stake per point
(£0.85301 – £0.84823) x £2 per point (£2 per £0.00010)
£0.00478 x £2 per point
47.8 points x £2 per point
Your Trading P&L = £95.60 profit
 
Situation 4 EUR / GBP moves higher and the financial spread betting market is adjusted and moved to £0.85837 – £0.85847.
Time to Restrict the Loss?At this point, you may choose to leave your forex trade open or close it in order to restrict your losses. In this case you choose to close your trade by buying the market at £0.85847.
Your Trading P&L = (Initial Price – Final Price) x stake per point
(£0.85301 – £0.85847) x £2 per point (£2 per £0.00010)
-£0.00546 x £2 per point
-54.6 points x £2 per point
Your Trading P&L = -£109.20 loss


EUR / GBP Notes:

  • Financial spread betting price obtained from Tradefair: 9 November 2011
  • Many spread betting firms will also let you trade on EUR / GBP in euros/point and dollars/point


How to Spread Bet on Sterling / Euro

Although EUR/GBP is the more common market (and the rate that is normally quoted in the press) you can trade on GBP/EUR. E.g. let’s assume that you are interested in speculating on Sterling / Euro, you look at a spread betting site, like City Index, and are presented with the real-time quote priced at:

GBP/EUR Rolling Daily: €1.17195 – €1.17225

Here is how the trade works

The Spread Betting Market GBP/EUR Rolling Daily
Quote (The Spread) €1.17195 – €1.17225
This Means You can trade on the GBP/EUR Rolling Daily market going:

  arrow_upward  Above €1.17225, or
  arrow_downward  Below €1.17195

This is a ‘Rolling Daily’ spread bet which means that there is no final closing date for this spread bet. If you don’t close your trade and the trading session ends then your position will roll over to the next trading session.

Note: if a trade is rolled over then you will either be credited or debited for overnight financing depending upon whether you are speculating on the market to increase or decrease.

For additional details also see Rolling Daily Spread Betting.
Units Traded Financial spread bets on the GBP/EUR market are made in £x per point.

Where a point is €0.00010 of the currency pair’s price movement.

E.g. if GBP/EUR changes by €0.00350 then you would lose or win 35 times your stake.
Trade Size You choose how much you are going to risk per point, e.g. £2 per point, £3 per point, £15 per point etc.
Quick Staking Exercise If, as an example, you have a stake of £4 per point and GBP/EUR moves by €0.00220 (22 points), you would gain or lose £4 per point x 22 points = £88.


Fully Worked Trading Example | Taking a Long Position on Sterling / Euro

Financial spread trading on the currency pair to move higher

You Now Decide to Go Long or Short GBP/EUR to move:

  arrow_upward  Above €1.17225? or
  arrow_downward  Below €1.17195?

Let’s Assume You Choose to Go Long   arrow_upward  Above €1.17225
You Select Your Stake, Let’s Say You Select £3 per point
So What Happens Next?
  • You gain £3 for each point (€0.00010) GBP/EUR moves higher than €1.17225
  • You lose £3 for every point (€0.00010) GBP/EUR moves below €1.17225
When You Buy a Market Your Trading P&L = (Final Level – Initial Level) x stake per point
 
Situation 1 GBP/EUR goes higher and the spread betting market is adjusted and moved to €1.17518 – €1.17548.
Lock in a Profit? At this point, you could decide to let your position run or close it, i.e. close your position to lock in a profit. In this case you choose to settle your trade and sell the market at €1.17518.
Your Trading P&L = (Final Level – Initial Level) x stake per point
(€1.17518 – €1.17225) x £3 per point (£3 per €0.00010)
€0.00293 x £3 per point
29.3 points x £3 per point
Your Trading P&L = £87.90 profit
 
Situation 2 GBP/EUR moves lower and the market adjusts and moves to €1.16979 – €1.17009.
Limit the Loss? At this point, you could decide to keep your position open or close it in order to restrict your losses. For this example, you decide to close your position and sell at €1.16979.
Your Trading P&L = (Final Level – Initial Level) x stake per point
(€1.16979 – €1.17225) x £3 per point (£3 per €0.00010)
-€0.00246 x £3 per point
-24.6 points x £3 per point
Your Trading P&L = -£73.80 loss


Fully Worked Example | Taking a Short Position on Sterling / Euro

Financial spread betting on the currency pair to decrease in value

You Decide to Go Long or Short GBP/EUR to go:

  arrow_upward  Above €1.17225? or
  arrow_downward  Below €1.17195?

Let’s Assume You Sell   arrow_downward  Below €1.17195
You Decide Your Stake, Let’s Assume You Opt For £2 per point
So What Next?
  • You lose £2 for every point (€0.00010) GBP/EUR pushes higher than €1.17195
  • You gain £2 for every point (€0.00010) GBP/EUR moves lower than €1.17195
When Going Short of a Market Your Trading P&L = (Initial Level – Final Level) x stake per point
 
Situation 3 GBP/EUR decreases and the forex spread betting market is revised and set at €1.16682 – €1.16712.
Close and Take Your Profit? At this point, you could decide to leave your spread bet open or close it, i.e. close your trade to lock in a profit. In this case you decide to close your trade by buying at €1.16712.
Your Trading P&L = (Initial Level – Final Level) x stake per point
(€1.17195 – €1.16712) x £2 per point (£2 per €0.00010)
€0.00483 x £2 per point
48.3 points x £2 per point
Your Trading P&L = £96.60 profit
 
Situation 4 GBP/EUR pushes higher and the financial spread betting market is revised and moved to €1.17571 – €1.17601.
Close and Restrict the Loss?At this point, you can opt to leave your spread bet open or close it and limit your loss. In this example you opt to close your bet and buy the market at €1.17601.
Your Trading P&L = (Initial Level – Final Level) x stake per point
(€1.17195 – €1.17601) x £2 per point (£2 per €0.00010)
-€0.00406 x £2 per point
-40.6 points x £2 per point
Your Trading P&L = -£81.20 loss


Sterling / Euro Notes:

  • Spread betting prices taken from City Index, 9 November 2011
  • You can also use a DFB to spread bet on forex markets like USD/JPY, EUR/USD, USD/MXN etc.

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

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