EUR/JPY Spread Betting

EUR/JPY Spread Betting

EUR/JPY Spread Betting Guide

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


Live EUR/JPY Chart and Prices



Where Can I Spread Bet on EUR/JPY?

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

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How to Spread Bet on EUR/JPY

For example, let’s assume you want to trade EUR / JPY, you look on a spread betting website, e.g. InterTrader, and they are offering the live market at:

EUR / JPY Rolling Daily: ¥105.541 – ¥105.571

This is what you can expect from a trade.

The Spread Trading Market EUR / JPY Rolling Daily
The Price ¥105.541 – ¥105.571
This Means That Now you can speculate on the EUR / JPY Rolling Daily market to move:

  arrow_upward  Higher than ¥105.571, or
  arrow_downward  Lower than ¥105.541

This is a Rolling Daily spread bet which means that there is no settlement date for this spread bet. If you decide not to close your trade and the trading session ends then your trade will roll over to the next trading day.

If a trade is rolled over then you will normally either be debited or credited for overnight financing depending on the direction of your trade.

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

Where a point is ¥0.010 of the FX market’s price movement.

E.g. if EUR / JPY changes by ¥0.350 then you would lose / win 35 multiples of your stake.
Stake Size per Unit You work out how much you are going to stake per point, e.g. £2 per point, £3 per point, £20 per point etc.
Simplified Example For example, if you decided on a stake of £4 per point and EUR / JPY moves by ¥0.230 (23 points), you would win / lose £4 per point x 23 points = £92.


Spread Trading Example | Buying EUR / JPY

Financial spread betting on the forex pair to move up in value

You Decide Whether to Go Long or Short EUR / JPY to push:

  arrow_upward  Higher than ¥105.571? or
  arrow_downward  Lower than ¥105.541?

Let’s Say You Decide to Go Long   arrow_downward  Higher than ¥105.571
You Choose Your Stake, Let’s Say You Choose £2 per point
Now What?
  • You will win £2 for each point (¥0.010) EUR / JPY pushes higher than ¥105.571
  • Your trade loses £2 for every point (¥0.010) EUR / JPY falls below ¥105.571
If You Are Speculating on a Market to Go Up Your Profits (or Losses) = (Settlement Level – Opening Level) x stake per point
 
Scenario 1 EUR / JPY climbs and the market is revised and set at ¥106.152 – ¥106.182.
Close and Take Your Profit? At this point, you could choose to keep your trade open or close it in order to lock in your profit. In this case you opt to close your bet and sell at ¥106.152.
Your Profits (or Losses) = (Settlement Level – Opening Level) x stake per point
(¥106.152 – ¥105.571) x £2 per point (£2 per ¥0.010)
¥0.581 x £2 per point
58.1 points x £2 per point
Your Profits (or Losses) = £116.20 profit
 
Scenario 2 EUR / JPY slips and the spread betting market moves to ¥104.885 – ¥104.915.
Time to Limit the Loss? You could opt to let your position run or close it and restrict your losses. In this instance you opt to close your bet by selling the market at ¥104.885.
Your Profits (or Losses) = (Settlement Level – Opening Level) x stake per point
(¥104.885 – ¥105.571) x £2 per point (£2 per ¥0.010)
-¥0.686 x £2 per point
-68.6 points x £2 per point
Your Profits (or Losses) = -£137.20 loss


Fully Worked Spread Betting Example | Taking a Bearish View of Euro / Yen

Financial spread trading on the forex pair to decrease

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

  arrow_upward  Higher than ¥105.571? or
  arrow_downward  Lower than ¥105.541?

Let’s Say You Want to Sell   arrow_downward  Lower than ¥105.541
You Select How Much to Risk, Selecting £3 per point
What Next?
  • Your trade loses £3 for every point (¥0.010) EUR / JPY goes above ¥105.541
  • You will win £3 for every point (¥0.010) EUR / JPY decreases below ¥105.541
If You Are Betting on a Market to Fall Your Profits (or Losses) = (Opening Level – Settlement Level) x stake per point
 
Scenario 3 EUR / JPY decreases and the financial spread betting market is adjusted and moved to ¥105.206 – ¥105.236.
Time to Take a Profit? At this point, you can choose to let your bet run or close it in order to take your profit. In this instance you decide to settle your position and buy the market at ¥105.236.
Your Profits (or Losses) = (Opening Level – Settlement Level) x stake per point
(¥105.541 – ¥105.236) x £3 per point (£3 per ¥0.010)
¥0.305 x £3 per point
30.5 points x £3 per point
Your Profits (or Losses) = £91.50 profit
 
Scenario 4 EUR / JPY goes higher and the spread trading market is revised and is set at ¥105.871 – ¥105.901.
Close and Limit the Loss?At this point, you could choose to let your position run or close it, i.e. close your spread bet to limit your loss. In this instance you opt to close your position and buy at ¥105.901.
Your Profits (or Losses) = (Opening Level – Settlement Level) x stake per point
(¥105.541 – ¥105.901) x £3 per point (£3 per ¥0.010)
-¥0.360 x £3 per point
-36 points x £3 per point
Your Profits (or Losses) = -£108.00 loss


Euro / Japanese Yen Notes:

  • Online spread betting quote taken from InterTrader on 9 November 2011
  • Many spread betting companies will also give you the option of financial spread betting on EUR / JPY in euros per point and dollars per point
  • Also see:


AuthorAlex Turner

Senior Editor, SpreadBetMagazine

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