GBP/JPY Spread Betting

GBP/JPY Spread Betting

GBP/JPY Spread Betting Guide

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


Live GBP/JPY Chart and Prices



Where Can I Spread Bet on GBP/JPY?

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How to Spread Bet on GBP/JPY

Let’s say you want to speculate on GBP / JPY, so you look on an app, e.g. the FinancialSpreads app, and get the latest market at:

GBP / JPY Rolling Daily: ¥123.699 – ¥123.779

Here is what happens…

The Market: GBP / JPY Rolling Daily
Spread Betting Quote: ¥123.699 – ¥123.779
How This Works: You can bet on the GBP / JPY Rolling Daily market moving:

  arrow_upward  Higher than ¥123.779, or
  arrow_downward  Lower than ¥123.699

This market is a ‘Rolling Daily’ market which means that there is no settlement date for this trade. If you don’t close your position and the trading session ends then your position will automatically roll over into the next trading day.

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

For additional information see rolling spread betting guide.
Trading Units: Spread bets on forex markets like GBP / JPY, are made in £x per point.

Where a point is ¥0.010 of the forex pair’s price movement.

E.g. if GBP / JPY moves by ¥0.300 then you would gain or lose 30 times your stake.
Stake: You decide how much you want to stake per point, e.g. £2 per point, £3 per point, £15 per point etc.
Quick Staking Exercise: For example, if you have a stake of £3 per point and GBP / JPY moves ¥0.350 (35 points), you would lose / win £3 per point x 35 points = £105.


Worked Spread Trading Example | Buying GBP / JPY

Financial spread trading on the forex pair to increase in value

You Choose to Buy or Sell: GBP / JPY to move:

  arrow_upward  Higher than ¥123.779? or
  arrow_downward  Lower than ¥123.699?

Let’s Say You Decide to Go Long:   arrow_downward  Higher than ¥123.779
You Select Your Stake, Let’s Say You Choose: £1 per point
What Next?
  • You will make £1 for every point (¥0.010) GBP / JPY goes higher than ¥123.779
  • You lose £1 for each point (¥0.010) GBP / JPY falls lower than ¥123.779
When Betting on a Market to Rise Your P/L = (Closing Value – Initial Value) x stake per point
 
Trading Example 1 GBP / JPY pushes higher and the market becomes ¥125.017 – ¥125.097.
Close for a Profit? At this point, you may decide to let your trade run or close it to lock in your profit. For this example, you opt to settle your trade by selling at ¥125.017.
Your P/L = (Closing Value – Initial Value) x stake per point
(¥125.017 – ¥123.779) x £1 per point (£1 per ¥0.010)
¥1.238 x £1 per point
123.8 points x £1 per point
Your P/L = £123.80 profit
 
Trading Example 2 GBP / JPY decreases and the spread trading market moves to ¥122.665 – ¥122.745.
Close and Restrict Your Loss? You may decide to keep your spread bet open or close it, i.e. close your position to restrict your losses. For this example, you decide to close your bet and sell at ¥122.665.
Your P/L = (Closing Value – Initial Value) x stake per point
(¥122.665 – ¥123.779) x £1 per point (£1 per ¥0.010)
-¥1.114 x £1 per point
-111.4 points x £1 per point
Your P/L = -£111.40 loss


Worked Trading Example | Selling Sterling/Yen

Spread betting on the forex pair to move lower

You Decide to Go Long or Short: GBP / JPY going:

  arrow_upward  Higher than ¥123.779? or
  arrow_downward  Lower than ¥123.699?

You Might Choose to Go Short:   arrow_downward  Lower than ¥123.699
You Choose How Much to Risk, Opting for: £2 per point
What Happens Now?
  • You lose £2 for each point (¥0.010) GBP / JPY moves higher than ¥123.699
  • You will make £2 for each point (¥0.010) GBP / JPY pushes below ¥123.699
If You Are Speculating on a Market to Go Down Your P/L = (Initial Value – Closing Value) x stake per point
 
Trading Example 3 GBP / JPY slips and the financial spread betting market is revised and changes to ¥122.877 – ¥122.957.
Time to Take Your Profit? You may choose to leave your trade open or close it, i.e. close your trade to lock in a profit. In this instance you choose to settle your position by buying the market at ¥122.957.
Your P/L = (Initial Value – Closing Value) x stake per point
(¥123.699 – ¥122.957) x £2 per point (£2 per ¥0.010)
¥0.742 x £2 per point
74.2 points x £2 per point
Your P/L = £148.40 profit
 
Trading Example 4 GBP / JPY increases and the spread betting market is revised and moved to ¥124.287 – ¥124.367.
Time to Limit Your Loss?At this point, you could opt to leave your position open or close it, i.e. close your position and limit your loss. For this example, you opt to close your bet and buy at ¥124.367.
Your P/L = (Initial Value – Closing Value) x stake per point
(¥123.699 – ¥124.367) x £2 per point (£2 per ¥0.010)
-¥0.668 x £2 per point
-66.8 points x £2 per point
Your P/L = -£133.60 loss


Pound Sterling / Japanese Yen Notes:

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

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