NZD/GBP contract

[RyuTwo]

Hi all

(my last post here was six months ago re trading platforms- have been v.busy piling up cash doing consulting work!!)

I am looking to trade the NZD/GBP contract. I'd like to check whether i have got this right. Currently I have an account with IG Index. The market on both the mini and standard contracts is say 3512-3516 - in other words a NZ$10k contract will cost me £3,516. Does that mean that the spread on the contract is equal to 4 pips?

When i look at the inverse (i.e. 1/0.3512 and 1/0.3516) - i get forex rates of £1=NZ$2.8474 and £1=2.8441 - this looks like a spread of 33 pips. What is the correct way to look at it?

Is this size of spread acceptable or is it a rip-off? I am looking around at other brokers in the market however the NZD/GBP contract does not seem to be offered as commonly as some of the more popular contracts.

 

[barn_burner]

Hi all

(my last post here was six months ago re trading platforms- have been v.busy piling up cash doing consulting work!!)

I am looking to trade the NZD/GBP contract. I'd like to check whether i have got this right. Currently I have an account with IG Index. The market on both the mini and standard contracts is say 3512-3516 - in other words a NZ$10k contract will cost me £3,516. Does that mean that the spread on the contract is equal to 4 pips?

When i look at the inverse (i.e. 1/0.3512 and 1/0.3516) - i get forex rates of £1=NZ$2.8474 and £1=2.8441 - this looks like a spread of 33 pips. What is the correct way to look at it?

Is this size of spread acceptable or is it a rip-off? I am looking around at other brokers in the market however the NZD/GBP contract does not seem to be offered as commonly as some of the more popular contracts.

Why are you so interested in that contract? I doubt that it is very liquid.

 

[timm]

Just checked CMC. They're taking 20pips on the GBPNZD at the moment. That's 0.07% in real money.

 

[RyuTwo]

Why are you so interested in that contract? I doubt that it is very liquid.

Hi barn burner
Good question!!
i am interested in this contract for hedging purposes. i have most of my cash in GBP but am looking to manage exposure to an increase in the value of NZD against GBP (that's where i am from). The NZD/GBP contract is a relatively cheap way to do that.

 

[RyuTwo]

Just checked CMC. They're taking 20pips on the GBPNZD at the moment. That's 0.07% in real money.

I called CMC and you are right. At this point the contract was quoted 2.8097 at 2.8117 - 20 pips. In comparison IG Markets offered the contract 3556 at 3560 (2.8090 at 2.8121 - 31 pips). So I'd be 11 pips better off with CMC!! I will look into structure of other transaction costs before making the switch.

 

[RyuTwo]

thanks again for your post Timm.
I have applied for a forex account with CMC - this is going to reduce my transaction costs by one third - which is really going to add up over several months. Their trading platform (demo version) also looks superior to that of IG Markets.

 

[kitelab]

thanks again for your post Timm.
I have applied for a forex account with CMC - this is going to reduce my transaction costs by one third - which is really going to add up over several months. Their trading platform (demo version) also looks superior to that of IG Markets.

Hi there, just wondering how you doing with the GBP/NZD pair? I have been eyeing out this pair as a potential but not finding a company offering decent spreads.

Which spread or normal broker are you using and what spread do they offer? I have just opened a cmc account and will have a look at their platform.