USD/CAD Spread Betting

USD/CAD Spread Betting

USD/CAD Spread Betting Guide

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


Live USD/CAD Chart and Prices



Where Can I Spread Bet on USD/CAD?

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

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How to Spread Bet on USD/CAD

Let’s suppose that you are thinking of speculating on USD / CAD, you go on a spread trading site, e.g. FinancialSpreads.com, and see the real time market price at:

USD / CAD Rolling Daily: C$1.02037 – C$1.02077

This is what you can expect from a trade…

Spread Trading Market USD / CAD Rolling Daily
Spread Trading Price C$1.02037 – C$1.02077
How the Spread Works Now you can take a position on the USD / CAD Rolling Daily market moving:

  arrow_upward  Above C$1.02077, or
  arrow_downward  Below C$1.02037

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

Note: if a trade rolls over then you will normally either receive or be charged interest for overnight financing based upon whether you are speculating on the market to decrease or increase.

For more information also see daily spread bets.
Points (Units) Traded Bets on the USD / CAD market are priced in £x per point.

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

E.g. if USD / CAD moves C$0.00550 then you would lose/win 55 multiples of your stake.
Stake You decide how much you are going to stake per point, e.g. £1 per point, £3 per point, £8 per point etc.
Simplified Example As an example, if you decided on a stake of £4 per point and USD / CAD changes by C$0.00210 (21 points), you would lose / win £4 per point x 21 points = £84.


Spread Trading Example | Going Long of USD / CAD

Spread trading on the FX market to move higher

You Now Choose to Buy or Sell USD / CAD to go:

  arrow_upward  Above C$1.02077? or
  arrow_downward  Below C$1.02037?

Let’s Say You Buy   arrow_downward  Above C$1.02077
You Decide Your Stake, Let’s Say You Opt For £3 per point
So Now What Happens?
  • You make a gain of £3 for every point (C$0.00010) USD / CAD goes higher than C$1.02077
  • You will lose £3 for each point (C$0.00010) USD / CAD pushes lower than C$1.02077
When Speculating on a Market to Go Up Your Trading P&L = (Final Value – Initial Value) x stake per point
 
Trading Situation 1 USD / CAD pushes higher and the market moves to C$1.02434 – C$1.02474.
Close and Take Your Profit? You may opt to leave your trade open or close it in order to lock in your profit. In this instance you choose to close your trade and sell at C$1.02434.
Your Trading P&L = (Final Value – Initial Value) x stake per point
(C$1.02434 – C$1.02077) x £3 per point (£3 per C$0.00010)
C$0.00357 x £3 per point
35.7 points x £3 per point
Your Trading P&L = £107.10 profit
 
Trading Situation 2 USD / CAD moves lower and the spread trading market is revised and is set at C$1.01669 – C$1.01709.
Restrict the Loss? At this point, you could opt to leave your spread bet open or close it, i.e. close your position to restrict your losses. In this case you choose to settle your position by selling the market at C$1.01669.
Your Trading P&L = (Final Value – Initial Value) x stake per point
(C$1.01669 – C$1.02077) x £3 per point (£3 per C$0.00010)
-C$0.00408 x £3 per point
-40.8 points x £3 per point
Your Trading P&L = -£122.40 loss


Fully Worked Example | Selling US Dollar / Canadian Dollar Rate

Financial spread trading on the FX market to go down

You Now Work Out Whether to Go Long or Short USD / CAD to move:

  arrow_upward  Above C$1.02077? or
  arrow_downward  Below C$1.02037?

Let’s Say You Choose to Sell   arrow_downward  Below C$1.02037
You Decide How Much to Risk, Let’s Say You Select £4 per point
What Happens Next?
  • You will lose £4 for each point (C$0.00010) USD / CAD pushes higher than C$1.02037
  • You make a gain of £4 for each point (C$0.00010) USD / CAD moves lower than C$1.02037
When You Sell a Spread Bet Your Trading P&L = (Initial Value – Final Value) x stake per point
 
Trading Situation 3 USD / CAD goes lower and the financial spread betting market is revised and moved to C$1.01801 – C$1.01841.
Time to Lock in a Profit? At this point, you can opt to let your spread bet run or close it and take a profit. For this example, you choose to close your bet by buying at C$1.01841.
Your Trading P&L = (Initial Value – Final Value) x stake per point
(C$1.02037 – C$1.01841) x £4 per point (£4 per C$0.00010)
C$0.00196 x £4 per point
19.6 points x £4 per point
Your Trading P&L = £78.40 profit
 
Trading Situation 4 USD / CAD goes higher and the spread betting market is adjusted to C$1.02221 – C$1.02261.
Time to Restrict the Loss?You can opt to keep your position open or close it, i.e. close your trade and limit your losses. In this example you choose to close your position and buy at C$1.02261.
Your Trading P&L = (Initial Value – Final Value) x stake per point
(C$1.02037 – C$1.02261) x £4 per point (£4 per C$0.00010)
-C$0.00224 x £4 per point
-22.4 points x £4 per point
Your Trading P&L = -£89.60 loss


US Dollar / Canadian Dollar (Loonie) Notes:

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

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