EUR/USD Spread Betting

EUR/USD Spread Betting

EUR/USD Spread Betting Guide

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


Live EUR/USD Chart and Prices



Where Can I Spread Bet on EUR/USD?

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

See the FX comparison table below.


EUR/USD Spread Betting Comparison

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
City Index Review £0 Variable Variable Variable Variable Variable Apply
ETX Capital Review £0.50 0.88†† 1.19†† 1.32†† 1.38†† 1.14†† Apply
IG Review £1-5 Variable Variable Variable Variable Variable Apply
InterTrader Review £1 Variable Variable Variable Variable Variable Apply


How to Spread Bet on EUR/USD

As an example, let’s imagine you are interested in financial spread betting on EUR / USD, you look at a spread betting site, such as Financial Spreads, and see that they are offering the latest spread of:

EUR / USD Rolling Daily: $1.35860 – $1.35870

Here is what you need to know about how it works:

Spread Betting Market: EUR / USD Rolling Daily
Spread Betting Price: $1.35860 – $1.35870
This Means That: You can speculate on the EUR / USD Rolling Daily market to go:

    arrow_downward  Higher than $1.35870, or
  arrow_downward  Lower than $1.35860

This is a ‘Rolling Daily’ spread betting market meaning that it does not have an expiry date. If you decide not to close your position and the session ends then your trade will automatically roll over to the next session.

Note that if a trade rolls over then you will normally either pay or receive a small fee for overnight financing depending on whether you are speculating on the market to go down or up.

To learn more see Rolling Daily Spread Bets.
Units Traded: Spread bets on the EUR / USD market are priced in £x per point.

Where a point is $0.00010 of the forex pair’s price movement.

E.g. if EUR / USD market moves by $0.00450 then you would gain or lose 45 multiples of your stake.
Stake Size: You work out your stake per point, e.g. £1 per point, £3 per point, £10 per point, £15 per point etc.
Brief Staking Exercise: If, for example, you decided on a stake of £3 per point and EUR / USD moves $0.00300 (30 points), you would win or lose £3 per point x 30 points = £90.


Spread Betting Example | Going Long of the Euro / Dollar Rate

Financial spread betting on the forex pair to increase

You Decide to Go Long or Short: EUR / USD to push:

  arrow_upward  Higher than $1.35870? or
  arrow_downward  Lower than $1.35860?

Let’s Assume You Decide to Go Long:   arrow_upward  Higher than $1.35870
You Choose Your Stake Size, Let’s Say You Opt For: £3 per point
Now What Happens?
  • You will gain £3 for each point ($0.00010) EUR / USD goes higher than $1.35870
  • You will lose £3 for every point ($0.00010) EUR / USD drifts lower than $1.35870
When Going Long of a Market Your P/L = (Final Price – Initial Price) x stake per point
 
Example 1 EUR / USD moves higher and the market is revised and is set at $1.36346 – $1.36356.
Time to Take a Profit? You could decide to leave your spread bet open or close it and lock in your profit. In this instance you opt to close your forex trade by selling the market at $1.36346.
Your P/L = (Final Price – Initial Price) x stake per point
($1.36346 – $1.35870) x £3 per point (£3 per $0.00010)
$0.00476 x £3 per point
47.6 points x £3 per point
Your P/L = £142.80 profit
 
Example 2 EUR / USD moves lower and the forex spread betting market becomes $1.35462 – $1.35472.
Time to Restrict Your Loss? At this point, you may decide to leave your bet open or close it to restrict your losses. In this case you opt to settle your position and sell at $1.35462.
Your P/L = (Final Price – Initial Price) x stake per point
($1.35462 – $1.35870) x £3 per point (£3 per $0.00010)
-$0.00408 x £3 per point
-40.8 points x £3 per point
Your P/L = -£122.40 loss



Trading Example | Taking a Short Position on EUR / USD

Spread betting on the forex pair to decrease

You Work Out Whether to Go Long or Short: EUR / USD to go:

  arrow_upward  Higher than $1.35870? or
  arrow_downward  Lower than $1.35860?

Let’s Assume You Sell:   arrow_downward  Lower than $1.35860
You Decide Your Stake, Selecting: £2 per point
So What Next?
  • You will lose £2 for every point ($0.00010) EUR / USD increases higher than $1.35860
  • You will gain £2 for every point ($0.00010) EUR / USD goes below $1.35860
When You Go Short With a Spread Bet Your P/L = (Initial Price – Final Price) x stake per point
 
Example 3 EUR / USD pushes lower and the forex spread betting market is moved to $1.35327 – $1.35337.
Time to Lock in Your Profit? At this point, you may opt to leave your spread bet open or close it in order to lock in a profit. For this example, you opt to close your position and buy the market at $1.35337.
Your P/L = (Initial Price – Final Price) x stake per point
($1.35860 – $1.35337) x £2 per point (£2 per $0.00010)
$0.00523 x £2 per point
52.3 points x £2 per point
Your P/L = £104.60 profit
 
Example 4 EUR / USD pushes higher and the financial spread betting market is revised and changes to $1.36298 – $1.36308.
Limit the Loss?At this point, you could decide to let your bet run or close it, i.e. close your spread bet and restrict your loss. In this instance you opt to settle your bet by buying at $1.36308.
Your P/L = (Initial Price – Final Price) x stake per point
($1.35860 – $1.36308) x £2 per point (£2 per $0.00010)
-$0.00448 x £2 per point
-44.8 points x £2 per point
Your P/L = -£89.60 loss


Euro / Dollar Notes:

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

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