GBP vs USD Spread Bets





Also see Live GBPUSD chart below.



Where Can I Spread Bet on GBPUSD?

You can put spread bets on GBPUSD and numerous other markets by using an account with the following spread trading platforms:

Financial Spreads ETX Capital Spreadex IG City Index
Dollar/Yen Daily Financial Spreads Dollar/Yen Daily ETX Capital Dollar/Yen Daily Spreadex Dollar/Yen Daily IG Dollar/Yen Daily City Index Dollar/Yen Daily
Euro/Dollar Daily Financial Spreads Euro/Dollar Daily ETX Capital Euro/Dollar Daily Spreadex Euro/Dollar Daily IG Euro/Dollar Daily City Index Euro/Dollar Daily
Euro/Sterling Daily Financial Spreads Euro/Sterling Daily ETX Capital Euro/Sterling Daily Spreadex Euro/Sterling Daily IG Euro/Sterling Daily City Index Euro/Sterling Daily
Sterling/Dollar Daily Financial Spreads Sterling/Dollar Daily ETX Capital Sterling/Dollar Daily Spreadex Sterling/Dollar Daily IG Sterling/Dollar Daily City Index Sterling/Dollar Daily
Sterling/Euro Daily Financial Spreads Sterling/Euro Daily ETX Capital Sterling/Euro Daily Spreadex Sterling/Euro Daily IG Sterling/Euro Daily City Index Sterling/Euro Daily
Other Forex Financial Spreads Other Forex ETX Capital Other Forex Spreadex Other Forex IG Other Forex City Index Other Forex
The above spread betting markets may also be available with other companies.


Live GBPUSD Chart




Live GBPUSD Chart




Where Can I Get Live Spread Betting Prices and Charts for GBPUSD?

The chart shown above provides some valuable insight into the behaviour of market.

However, if you’re spread trading GBPUSD, the companies listed above include real-time pricing as well as charts with more advanced options.

Example chart:

GBP vs USD Spread Bets - Example Chart



GBPUSD Spread Betting Example

GBP vs USD Spread Bets
If you are interested in financial spread betting on a forex rate like GBPUSD then, on visiting a trading platform like CMC Markets, you would currently find a quote of $1.69710 – $1.69728.

That means you can speculate on GBPUSD to go higher than $1.69728 or to go lower than $1.69710.

With spread trading, you speculate on every unit the market goes up or down; specifically, for the GBPUSD market a unit is $0.00010 of the FX rate’s price movement.

So for this example, let’s say you decide to stake £4 for every $0.00010 GBPUSD rises or falls.


Buying – Speculating on the Market to Go Up

If you were to go long of GBPUSD at $1.69728 and the FX rate increased then the quote might become $1.70220 – $1.70238. If so, you could close your position for a profit by selling at $1.70220.

Your P&L = (closing level of the market – opening level of the market) x stake per $0.00010
Your P&L = ($1.70220 – $1.69728) x £4 per $0.00010 stake
Your P&L = $0.00492 x £4 per $0.00010
Your P&L = £196.80 profit

Nevertheless, if the FX rate had moved down to, for example, $1.69270 – $1.69288, you might decide to close your bet to prevent further losses. If that were to happen, you would sell the market at $1.69270.

Therefore, with the same £4 per $0.00010 stake:

Your P&L = (closing level of the market – opening level of the market) x stake per $0.00010
Your P&L = ($1.69270 – $1.69728) x £4 per $0.00010 stake
Your P&L = -$0.00458 x £4 per $0.00010
Your P&L = -£183.20 loss


Selling – Speculating on the Market to Go Down

A key feature of spread betting is that investors can go short of the markets, i.e. bet on the markets to decrease.

When we began this example, the market was priced at $1.69710 – $1.69728.

If you shorted GBPUSD at $1.69710 and the FX rate fell then the quote could become $1.69269 – $1.69287. Therefore, you might decide to close your position for a profit at $1.69287.

Your P&L = (opening level of the market – closing level of the market) x stake per $0.00010
Your P&L = ($1.69710 – $1.69287) x £4 per $0.00010 stake
Your P&L = $0.00423 x £4 per $0.00010
Your P&L = £169.20 profit

Of course, if the FX rate were to rise up to, as an example, $1.70086 – $1.70104, you might decide to close your position to limit your losses. If this were the case, you’d buy the market at $1.70104.

So, with the same £4 per $0.00010 stake:

Your P&L = (opening level of the market – closing level of the market) x stake per $0.00010
Your P&L = ($1.69710 – $1.70104) x £4 per $0.00010 stake
Your P&L = -$0.00394 x £4 per $0.00010
Your P&L = -£157.60 loss


GBPUSD Rolling Daily market quoted as of 25-Jul-14.

This is a ‘Rolling Daily’ spread bet. This kind of trade doesn’t have a predetermined settlement date and automatically rolls over to the next trading day. When a market rolls over you may incur a small charge or receive a small credit. For more information see guide to rolling daily markets.


GBPUSD Practice Accounts

What if you just want to try things out first? Well, the companies detailed below have free practice accounts, these accounts let you place some trades on GBPUSD without risking your funds.


13-Sep-2014 Update: No Floor for GBPUSD

GBPUSD crossed below the key $1.65 level on Tuesday and the market is continuing to plummet.

Considering that the market was at $1.719 on 15 July and we’re now trading as low as $1.628 that’s a rather nasty fall.




User Questions and Answers on GBPUSD

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