Spread betting on currencies
Currency pairs offer round-the-clock liquidity and the tightest margins the FCA allows — which makes them both popular and unforgiving.
How it works
You bet per point on an exchange rate — say GBP/USD. Buy at £1/pt and every point the rate rises earns £1; every point it falls costs £1. Major-pair retail margin is 3.33% (30:1), the highest leverage available to UK retail traders, so small rate moves produce outsized account swings.
What moves FX
Central bank decisions, inflation prints, employment data and politics. Pairs also carry personalities: commodity-linked currencies track oil and metals, and JPY pairs react to risk sentiment. Economic calendars matter more here than in any other market.
Costs
Spreads on majors are fractions of a point, but overnight financing on daily rolling bets reflects the interest-rate gap between the two currencies — holding positions for weeks can cost more than the spread. Check both numbers before choosing a provider.