How to Trade Forex

Trading Forex with Spread Co, using spread betting or CFDs, is easy with our web-based, iPad and mobile trading platforms

Forex trading is all about understanding how the volatility of financial markets affects currency exchange rates. Forex traders need to be able to anticipate the impacts on exchange rates, and act quickly. Spread Co gives you the tools to do just that.

Here’s what to do.

Step one – Open an account

There’s no joining fee and no inactivity fees. Opening an account is simple and will only take you a few minutes.

Step two – Choose your trading platform

Our web-based platform allows you to trade from any computer with no download necessary. Alternatively you can use our mobile apps - available on iPhone and Android - and iPad app, giving you the freedom to trade on the move.

More on trading platforms

Step three – Fund your account

You can fund your account using your card on any of our trading platforms. You can also fund your account using a bank transfer or Skrill.

More on funding your account

Step four – Start trading

Our trading platforms make trading easy to understand and easy to do.


Trading Examples

Below we have provided some forex trading examples that show you how we calculate your trade based on spread size and margin requirement, including potential profit or loss that could be made, based on theoretical trades. 

In this example, you believe sterling will weaken against the US dollar and take a short position on GBPUSD (our product which mirrors the Spot GBP/USD market). 

Our price for GBPUSD is 1.55713 (Bid) and 1.55723 (Offer). Our spread on this trade is 1 point.

You decided to go short at £5 per point. You place a limit order of 1.54983 and a stop loss of 1.56083.

Your margin

For your £5 per point bet, your margin is calculated as:

forex_equation

So:

forex_equation2

Possible outcomes

The exchange rate falls to 1.54983 (your limit order value)

The exchange rate rises to 1.56083 (your stop loss value)

Original bid price minus your limit order multiplied by trade size

Original bid price minus your stop loss multiplied by trade size

(155713 – 154983) x £5

(155713 – 156083) x £5

Profit £365.00
Loss £185.00

When spread betting with Spread Co your profit is always in the same currency as the one you used to place your bet. So, if your bet is in GBP, your profit is in that currency, even if you were to bet on EUR/USD.

When you spread bet on forex with Spread Co

  • Your profits are tax free on spread bets
  • Margins are as low as 0.5%
  • You can stake as little as £1 per point
  • Spreads are fixed 24 hours a day

In this example, you believe the euro will strengthen against sterling and take a long position on EURGBP (our product which mirrors the Spot EUR/GBP market). 

Our price for EUR/GBP is 0.84883 (Bid) and 0.84903 (Offer). Our spread on this trade is 2 points.

You decide to go long 100,000 contracts. You place a limit order of 0.85350 and a stop loss of 0.84650.

Your margin

For your 100,000 contracts, your margin is calculated as:

foex_equation3

So:

forex_equation4

Possible outcomes

The exchange rate rises to 0.85350 (your limit order)

The exchange rate falls to 0.84650 (your stop loss value)

Limit order minus original offer price multiplied by trade size

Stop loss order minus original offer price multiplied by trade size

(0.85350 - 0.84903) x 100,000

(0.84650 - 0.84903) x 100,000

Gross profit £447.00
Financing (7 days) £17.50
Net profit £429.50
Net loss £253.00
Financing (7 days) £5.60
Gross loss £258.60

When you trade forex CFDs with Spread Co

  • Margins are as low as 0.5%
  • Spreads are fixed 24 hours a day
  • Choose from 38 currency pairs
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Spread Co Limited is a limited liability company registered in England and Wales with its registered office at 22 Bruton Street, London W1J 6QE. Company No. 05614477. Spread Co Limited is authorised and regulated by the Financial Conduct Authority. Register No. 446677.

Spread betting and CFD trading are leveraged products and can result in losses that exceed your deposits. Ensure you understand the risks.

Losses can exceed deposits. Click here to learn more.