Spread Betting on GBP / USD

Where to Spread Bet on GBP / USD

Forex
EUR/USD (spread size)	1	0.8	1	1	0.7††	2	1
GBP/USD (spread size)	2	0.8	2	2	0.9††	3	2
Forex (min stake)	£1	£1	£0.50	£1	£1	£0.50	£1
Forex (more available)

Forex News and Analysis

• Forex Spread Betting News
• EUR/USD Spread Betting Analysis
• GBP/USD Spread Betting Analysis
• USD/JPY Spread Betting Analysis

GBP / USD Spread Betting Prices and Charts

• Capital Spreads
• CMC Markets
• ETX Capital
• Financial Spreads
• GFT
• IG Index
• InterTrader

Financial Spread Betting on GBP / USD

The Market:	GBP / USD Rolling Daily
The Quote:	$1.59545 - $1.59565
This Means That:	Now you can take a position on the GBP / USD Rolling Daily market to go:   Above $1.59565, or   Below $1.59545 This is a 'Rolling Daily' market which means that there is no closing date for this spread bet. If you don't close your trade and the trading session ends then your position will automatically roll over to the next session. Note: if a trade does roll over then you will normally either pay or receive a small fee for overnight financing based on the direction of your position. For further information see Rolling Spread Betting.
Units Traded:	Spread bets on the GBP / USD market are made in £x per point. Where a point is $0.00010 of the FX market's price movement. E.g. if GBP / USD moves by $0.00550 then you would lose or gain 55 multiples of your stake.
Stake (Trade Size):	You work out how much you are going to risk per point, e.g. £1 per point, £4 per point, £10 per point, £20 per point etc.
Quick Staking Exercise:	With that in mind, if your stake was £3 per point and GBP / USD moves $0.00310 (31 points), you would lose or win £3 per point x 31 points = £93.

Fully Worked Example | Buying GBP / USD

You Choose Whether to Buy or Sell:	GBP / USD to push:   Above $1.59565? or   Below $1.59545?
Let’s Assume You Want to Buy:	Above $1.59565
You Choose How Much to Risk, Opting for:	£4 per point
So Now What?	Your trade wins £4 for each point ($0.00010) the GBP / USD rate climbs above $1.59565 Your trade loses £4 for every point ($0.00010) the GBP / USD rate falls below $1.59565
If You Are Spread Betting on a Market to Go Up Your Trading Profits (or Losses) =	(Closing Rate - Initial Rate) x stake per point
Scenario 1	The GBP / USD rate increases and the market is moved to $1.59884 - $1.59904.
Time to Lock in a Profit?	At this point, you can opt to leave your FX spread bet open or close it to take your profit. In this case you opt to settle your position and sell the market at $1.59884.
Your Trading Profits (or Losses) =	(Closing Rate - Initial Rate) x stake per point
	($1.59884 - $1.59565) x £4 per point (£4 per $0.00010)
	$0.00319 x £4 per point
	31.9 points x £4 per point
Your Trading Profits (or Losses) =	£127.60 profit
Scenario 2	The GBP / USD pair decreases and the financial spread betting market becomes $1.59286 - $1.59306.
Limit Your Loss?	At this point, you could choose to let your spread bet run or close it, i.e. close your trade to limit your losses. In this case you opt to close your bet and sell at $1.59286.
Your Trading Profits (or Losses) =	(Closing Rate - Initial Rate) x stake per point
	($1.59286 - $1.59565) x £4 per point (£4 per $0.00010)
	-$0.00279 x £4 per point
	-27.9 points x £4 per point
Your Trading Profits (or Losses) =	-£111.60 loss

Worked FX Spread Betting Example | Taking a Short Position on GBP / USD

You Decide to Buy or Sell:	GBP / USD going:   Above $1.59565? or   Below $1.59545?
Let's Say You Go Short:	Below $1.59545
You Decide How Much to Risk, Let's Assume You Select:	£2 per point
What Now?	Your trade loses £2 for every point ($0.00010) the GBP / USD rate goes higher than $1.59545 Your trade wins £2 for every point ($0.00010) the GBP / USD rate goes lower than $1.59545
When Going Short of a Market Your Trading Profits (or Losses) =	(Initial Rate - Closing Rate) x stake per point
Scenario 3	The GBP / USD rate pushes lower and the forex spread betting market is revised to $1.59046 - $1.59066.
Close and Take a Profit?	You can decide to leave your spread bet open or close it in order to take your profit. In this example you decide to settle your position by buying the market at $1.59066.
Your Trading Profits (or Losses) =	(Initial Rate - Closing Rate) x stake per point
	($1.59545 - $1.59066) x £2 per point (£2 per $0.00010)
	$0.00479 x £2 per point
	47.9 points x £2 per point
Your Trading Profits (or Losses) =	£95.80 profit
Scenario 4	GBP / USD pushes higher and the FX spread betting market adjusts and moves to $1.59944 - $1.59964.
Close and Limit the Loss?	At this point, you can choose to let your spread bet run or close it, i.e. close your spread bet to restrict your loss. In this case you decide to close your trade and buy the market at $1.59964.
Your Trading Profits (or Losses) =	(Initial Rate - Closing Rate) x stake per point
	($1.59545 - $1.59964) x £2 per point (£2 per $0.00010)
	-$0.00419 x £2 per point
	-41.9 points x £2 per point
Your Trading Profits (or Losses) =	-£83.80 loss

GBP / USD Notes:

• Financial spread trading quote taken from InterTrader as of 10 November 2011
  
  
• Many spread betting companies will also give you the option of financial spread trading on the GBP / USD rate in euros/point and dollars/point
  
  
• With spread betting you can trade a large range of markets, for more information please see:
  
  
  • Index Spread Betting
  • Spread Betting on Forex Markets
  • Financial Spread Betting on Stocks and Shares
  • Spread Betting on Commodities

Demo Accounts for Spread Betting on GBP / USD

Spread Betting
Demo Account

Spread Betting on Forex