USD/MXN Spread Betting

USD/MXN Spread Betting

USD/MXN Spread Betting Guide

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


Live USD/MXN Chart and Prices



Where Can I Spread Bet on USD/MXN?

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How to Spread Bet on USD/MXN

As an example, let’s imagine you are considering taking a position on USD / MXN, you log in to the IG mobile app and see the market at:

USD / MXN Rolling Daily: M$12.87280 – M$12.88160

Here is what you need to know.

The Market: USD / MXN Rolling Daily
The Spread Betting Quote: M$12.87280 – M$12.88160
How the Spread Works: Now you can trade on the USD / MXN Rolling Daily market moving:

  arrow_upward  Above M$12.88160, or
  arrow_downward  Below M$12.87280

This is a Rolling Daily trade meaning that it does not have a closing date. If you haven’t closed your position and the trading session ends then your position will roll over to the next trading session.

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

For further details see Rolling Spread Bets.
Units (Points) Traded: Bets on the USD / MXN market are priced in £x per point.

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

E.g. if USD / MXN moves M$0.00300 then you would win or lose 30 multiples of your stake.
Stake Size per Unit: You work out how much you would like to trade per point, e.g. £1 per point, £5 per point, £15 per point etc.
Staking Example: If, for example, you went with a stake of £3 per point and USD / MXN moves by M$0.00270 (27 points), you would win / lose £3 per point x 27 points = £81.


Spread trading on the FX market to rise

You Select Whether to Go Long or Short: USD / MXN to go:

  arrow_upward  Above M$12.88160? or
  arrow_downward  Below M$12.87280?

Let’s Assume You Go Long:   arrow_downward  Above M$12.88160
You Decide Your Stake, Let’s Assume You Opt For: £1 per point
So Now What Happens?
  • You will make £1 for every point (M$0.00010) USD / MXN pushes higher than M$12.88160
  • Your spread bet loses £1 for each point (M$0.00010) USD / MXN moves lower than M$12.88160
If You Are Spread Betting on a Market to Increase Your P/L = (Settlement Price – Opening Price) x stake per point
 
Scenario 1 USD / MXN goes higher and the market adjusts and moves to M$12.89770 – M$12.90650.
Take a Profit? You could opt to keep your spread bet open or close it, i.e. close your trade to lock in your profit. In this case you opt to settle your bet and sell the market at M$12.89770.
Your P/L = (Settlement Price – Opening Price) x stake per point
(M$12.89770 – M$12.88160) x £1 per point (£1 per M$0.00010)
M$0.01610 x £1 per point
161 points x £1 per point
Your P/L = £161.00 profit
 
Scenario 2 USD / MXN falls and the spread trading market moves to M$12.86679 – M$12.87559.
Time to Limit Your Loss? You could choose to keep your position open or close it to limit your losses. In this example you choose to settle your position and sell at M$12.86679.
Your P/L = (Settlement Price – Opening Price) x stake per point
(M$12.86679 – M$12.88160) x £1 per point (£1 per M$0.00010)
-M$0.01481 x £1 per point
-148.1 points x £1 per point
Your P/L = -£148.10 loss


Fully Worked Example | Taking a Bearish View of The Dollar/Peso FX Rate

Spread betting on the FX market to go down in value

You Work Out Whether to Go Long or Short: USD / MXN going:

  arrow_upward  Above M$12.88160? or
  arrow_downward  Below M$12.87280?

Let’s Assume You Sell:   arrow_downward  Below M$12.87280
You Choose How Much to Risk, Let’s Assume You Choose: £1 per point
What Next?
  • Your spread bet loses £1 for each point (M$0.00010) USD / MXN goes higher than M$12.87280
  • You will make £1 for each point (M$0.00010) USD / MXN decreases below M$12.87280
If You Are Selling a Market Your P/L = (Opening Price – Settlement Price) x stake per point
 
Scenario 3 USD / MXN drops and the financial spread betting market is revised and is set at M$12.85032 – M$12.85912.
Lock in Your Profit? At this point, you may opt to leave your position open or close it, i.e. close your spread bet for a profit. In this case you decide to settle your bet by buying at M$12.85912.
Your P/L = (Opening Price – Settlement Price) x stake per point
(M$12.87280 – M$12.85912) x £1 per point (£1 per M$0.00010)
M$0.01368 x £1 per point
136.8 points x £1 per point
Your P/L = £136.80 profit
 
Scenario 4 USD / MXN increases and the spread betting market changes to M$12.87658 – M$12.88538.
Time to Restrict Your Loss?You may decide to let your trade run or close it, i.e. close your spread bet and restrict your losses. In this instance you opt to settle your trade by buying the market at M$12.88538.
Your P/L = (Opening Price – Settlement Price) x stake per point
(M$12.87280 – M$12.88538) x £1 per point (£1 per M$0.00010)
-M$0.01258 x £1 per point
-125.8 points x £1 per point
Your P/L = -£125.80 loss


US Dollar / Mexican Peso Notes:

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

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