Significant advantages of spread betting
with City Index over conventional forms of foreign exchange trading
are:
- It is quicker and cheaper than dealing
through a bank
- Small bet sizes
City Index provides its clients with the opportunity to
speculate on the two main currency markets.
|
Market |
GSL Premium (x Stake) |
Minimum Distance |
Minimum Stake |
Maximum Stake |
| |
|
|
|
|
| GBP/USD |
5 |
50 |
£1 |
£20 |
| |
|
|
|
|
| EUR/USD |
5 |
50 |
£1 |
£20 |
| |
|
|
|
|
More information on currency
bets
Daily Rolling Bets
Rolling bets have been introduced to provide a transparent, cost
effective solution for short term trading on currency
markets.
The normal advantages of spread betting still apply, namely
tax-free* margin trading and the ability to bet on prices rising as
well as falling. The Rolling markets are based on the underlying
spot market (similar to our Daily Spot FX markets) but with the
advantage of being able to maintain a position over an extended
period. Open positions held over night will be closed and re-opened
at the same price, being the end of day valuation of that market.
This will have the effect of realising any profit or loss on your
position on a daily basis.
Financing charges are levied overnight. Rolling bets can be
opened and closed at any time during normal trading hours.
* Refers to UK Capital Gains Tax regime which can of course
change.
Financing
Example
If you had bought EUR/USD Rolling Spot, then the daily
financing charge is the EUR one day deposit rate vs the USD one day
borrowing rate (e.g. 2.25% - 4.08% = -1.83%)
EUR/USD rate = 11720
Financing = 11720 x -1.83% / 360 days = - 0.6 ticks
If you had been long £10 of EUR/USD Rolling per tick then the
financing would have been – 0.6 x £10 = £6 debit to your
account.
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Limited Risk Account Markets page