Improved FX Pricing Introduced from Financial Spreads

By mosesbet · Filed Under Market News Comments Off on Improved FX Pricing Introduced from Financial Spreads 

Spread bettors using the trading platform of Financial Spreads, a UK based spread betting firm, have something positive to look forward to. The company has recently announced that it had improved its forex market pricing, so that it reflects the fundamental interbank markets in a better way. This, the company said, has been achieved by adding an extra decimal to the existing currency spread betting prices. With the extra decimal place, Financial Spreads wants to make their FX pricing more accurate, and give its customers a clearer and more definite price to trade on.

How the new FX pricing works

Earlier, tradable values were rounded off to the fourth decimal on With this change, the prices displayed on the Financial Spreads website will be shown with that additional decimal place. Although this does not necessarily change the market’s point size, it surely gives the trades more accuracy in price. So in case of EUR/USD, the point size will remain $0.0001 = $0.00010, although when calculating the trade, the value in the extra decimal point will not be rounded. Instead, it would be considered as a fractional point.

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Benefits of the new pricing system

To understand the benefits of this new pricing system, take a look at the example.

Before the change, a EUR/USD trade would be calculated after rounding off the value to fourth decimal. So the point would be $0.0001. If the buy price is $1.3100 and sell price is $1.3120 with a ₤5 stake, then difference in price would be $0.0020 ($1.3120 – $1.3100) or 20 points. So when you calculate the profit/loss, it would come to: ₤5 (stake) x 20 points = ₤100.

With the new pricing system, the values would not be rounded. So the same trade would have a point size of $0.00010, with the buy price of $1.30998 and sell price of $1.3120. The prize difference would be $0.00206 ($1.31204 – $1.30998) or 20.6 points. With the stake remaining at ₤5, the trade would be calculated at ₤5×20.6 points, which comes to ₤103.

When you consider using the new pricing system for bigger trades, the difference in the trade value will also increase significantly. Along with this lucrative pricing system, Financial Spreads also offers the tightest spread in the market, according to the company’s spokesperson.



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