The USDCHN spread betting guide:
Where Can I Spread Bet on USDCHN?
You can put trades on USDCNH, as well as numerous other financial markets, by using an account with any of these spread trading companies:Also note that the trading hours on this market have a natural shift towards Asian hours. E.g. CMC offer this market from 2am to 5pm UK time.
Note that you can also trade CNH/JPY with Tradefair.
Readers should be aware that this market might be offered by other providers not listed here.
Remember – spread betting is high risk, your losses can exceed your deposits.
Live USDCHN Chart
Live USDCHN Chart
Where Can I Get Live Spread Betting Prices and Charts for USDCHN?
The chart shown above offers you a handy view of the current market trends.However, if you’re trading USDCNH, the providers listed above have live price updates and charts with more options.
Typical forex chart:
USDCHN Spread Betting Example
That means you can speculate on USDCNH to move above ¥6.15191 or move below ¥6.15091.
When placing a spread bet, investors speculate on every unit the market increases or decreases; in the case of the USDCNH market a unit is ¥0.00010 of the FX rate’s price movement.
Let’s say, for this instance, you want to trade £2 for every ¥0.00010 USDCNH increases or decreases.
Buying – Spread Betting on the Market to Go Up
If you were to go long of USDCNH at ¥6.15191 and the FX rate rose then the quote might be re-priced at ¥6.16114 – ¥6.16214. In that case, you might choose to close your position for a profit at ¥6.16114.P&L = (final price of the market – initial price of the market) x stake per ¥0.00010
P&L = (¥6.16114 – ¥6.15191) x £2 per ¥0.00010 stake
P&L = ¥0.00923 x £2 per ¥0.00010
P&L = £184.60 profit
However, if the FX rate had fallen to, as an example, ¥6.14360 – ¥6.14460, you might want to close your bet to limit your losses. Therefore, you’d make a sell trade at ¥6.14360.
So, with the same £2 per ¥0.00010 stake:
P&L = (final price of the market – initial price of the market) x stake per ¥0.00010
P&L = (¥6.14360 – ¥6.15191) x £2 per ¥0.00010 stake
P&L = -¥0.00831 x £2 per ¥0.00010
P&L = -£166.20 loss
Selling – Spread Betting on the Market to Go Down
One of the many advantages of using a spread bet is that investors can go short of the markets, i.e. bet on the markets to decrease.This market was originally priced at ¥6.15091 – ¥6.15191.
If you shorted USDCNH at ¥6.15091 and the FX rate went down then you might see the quote drop to ¥6.14207 – ¥6.14307. If so, you might decide to close your position by buying at ¥6.14307.
P&L = (initial price of the market – final price of the market) x stake per ¥0.00010
P&L = (¥6.15091 – ¥6.14307) x £2 per ¥0.00010 stake
P&L = ¥0.00784 x £2 per ¥0.00010
P&L = £156.80 profit
Of course, if the FX rate were to rise to ¥6.15697 – ¥6.15797, you may decide to close your bet to restrict your losses. If that happened, you would buy the market at ¥6.15797.
With the same £2 per ¥0.00010 stake:
P&L = (initial price of the market – final price of the market) x stake per ¥0.00010
P&L = (¥6.15091 – ¥6.15797) x £2 per ¥0.00010 stake
P&L = -¥0.00706 x £2 per ¥0.00010
P&L = -£141.20 loss
USDCNH prices quoted as of 14-Aug-14.
This is a ‘Cash’ market. This style of market doesn’t have a predetermined expiry date and will just rollover to the next session. When a market rolls over you might receive a small credit or incur a small financing cost. For more details, please see rolling daily / cash spread bets.
USDCNH Test Accounts
The companies listed below have free test accounts. You can use these accounts to have a go at trading USDCNH without risking any funds.
Spread betting carries a high level of risk. You can lose more than your initial investment or stake. Spread betting may not be suitable for all investors. Only trade with money that you can afford to lose. Make sure you fully understand the risk involved. If necessary, seek independent financial advice.