Spread Betting on FOREX with ActivTrades allows you to back your judgement on Forex market movements. You can speculate on the movement of over 50 currency pairs by simply ‘buying’ if you think the currency is going to strengthen and ‘selling’ if you think the currency is going to weaken.
ActivTrades offers clients the possibility to trade with a minimum stake of 10 pence per point with a minimum transaction size of 0.1 lot.
The table shows the lot size with a value of a pip when quoted in the normal 4-decimal-place configuration. A pip is the smallest incremental movement of a currency pair when quoted in the 4-decimal-place configuration. In a 5-decimal-place configuration, a tick is the smallest increment. One pip equals 10 ticks.
You can use both values to calculate the profit and loss on your bet.
Spread betting currency Profit and Loss calculation
1 Lot = 10,000 units; 1 Lot full pip value = £1
Buy 1 Lot EURUSD at 1.47235
Buy 10,000 units at 1.47235 = £14,723.5
Sell 1 Lot EURUSD at 1.47965
Sell 10,000 units at 1.47965 = £14,796.5
£14,796.5 – £14,723.5 = £73
In this case the trade was profitable £73. The same calculation can be made in pip terms:
1 Lot EURUSD full pip value = £1
Buy at rate 1.47235
Sell at rate 1.47965
1.47965 – 1.47235 = 73 pips = 73 full pips profit at £1 per full pip
= + £73
ActivTrades offers competitive dealing spreads, starting from just 0.5 pips. Click here for the Forex spreads table.
Margin and Leverage
At ActivTrades, we offer currency spread betting with flexible leverage, which ranges between 1/1 and 1/400, giving traders the control of appropriate level of risk. Your margin requirement will be based on your leverage, which means that you will only have to put forward a small percentage of the total trade value from your own funds as initial margin. The leverage and margin conditions for spread betting Forex are the same as for the forex trading.
Please find below the maximum leverages for retail customers under ESMA regulation
|Major FX pairs||Max Leverage 1:30||Margin 3.33%||Close-out Level 50%|
|Non-major FX pairs||Max Leverage 1:20||Margin 5%||Close-out Level 50%|
|Gold||Max Leverage 1:20||Margin 5%||Close-out Level 50%|
|Silver||Max Leverage 1:10||Margin 10%||Close-out Level 50%|
Example of a Leveraged Bet
You have £10,000 equity in your trading account and you anticipate the EUR will appreciate against the USD. To reflect this opinion you need to place a bet where you buy EUR against USD, the current EURUSD price is 1.32525. You decide to buy 1 lot with £1 per full pip at leverage of 1:400. By placing a spread bet at £1 per full pip when the price is 1.32525, the value of the trade would be £13,252.5 (the price 1.32525*lot size 10,000). The maximum permitted leverage for your account value is 1:400, or expressed as margin is 0.25%. The margin requirement for the trade is therefore £33.13 (13,252.5 /400).
If you hold your position open overnight you will be charged a rollover cost. Rollovers, or SWAPS, are the interest rate calculations that determine the cost or reward of holding an open position overnight. View our SWAPS table here
Pip value x Swap rate (long or short)
Buy 1 lot AUDCAD , Swap rate for AUDCAD long is 0,58 pips
Swap charge: Pip value x Long swap = 1 x 0.58 = 0.58 GBP
At ActivTrades, we offer a range of orders allowing the trader to take control over the risk, as they can be used to maximise your trading potential, as well as minimise the downside risks. There are several ways to place trade orders in the terminal. Click here to find out more.
- All our transactions are structured like a CFD; therefore they are cash settled and do not result in the delivery of the underlying currencies or commodities.
- Trading hours are nonstop from Sunday 23:00 CET until Friday 23:00 CET, except for Gold, Silver, Platinum and Palladium.
- Gold, Silver, Platinum and Palladium sessions start at 00:00 CET until 23:00 CET from Monday to Friday.
- The minimum transaction size is 0.01 contract (micro-lot). With mini and micro-lot trading, all conditions remain the same, including spreads.
- To utilise trailing stops you must be logged into your MT4 platform.
- The pair USD/CNH is not traded 24 hours trading hours are from 02:30 till 23:00 (Server Time)
- The pair USD/RUB is not traded 24 hours trading hours are from 08:00 till 17:00 (Server Time)