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Opening a Spread Betting Account FAQ

How does fractional pip pricing work?

We have improved the way we price FX pairs to greater reflect the underlying interbank market by adding an extra integer to many of the quotes. The reason for doing this is to make our FX prices more accurate and thus give you a better and more accurate price to trade on.

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How will this work?

On some trade tickets the very last number in the price may be a smaller digit. This smaller digit is not the actual tick size of the price, but simply an extra integer i.e. 1/10th of a point. Therefore, as a general rule, you will be trading on the last large figure of the price quoted, as you were before, but with the additional benefit of seeing an extra (smaller) digit for greater accuracy.

If we take an FX market such as GBP/USD, for example. Rather than quoting this market to four decimal places as a price of 1.5850-1.5852, we have added a smaller integer to make the quote five decimal places. In the example below, if you bought £1 per point of GBP/USD Rolling Daily at 1.58505 and sold £1 to close at 1.58510, your profit would be 50p.

The extra digit has been applied to FX markets only at this time.

trade ticket

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The benefit to you

Prior to us making this change, the buy price was rounded to the last tradable digit. Now, with the additional decimal place, you will see and be able to trade on a more accurate price.

Our spreads remain some of the tightest in the industry and what's more, our spreads are tighter for longer. So, when we say we have a 1 point spread on EUR/USD we'll quote a rate with a 1 point spread 24 hours a day.*

*LCG has the right to vary Overnight Financing interest rates, spreads or commission rates on any contract or vary the Size specifications without notice especially in, but not limited to, volatile market conditions and/or illiquidity of the Underlying Market. At LCG's discretion quoted spreads made via the telephone may differ from the spreads available on an OTP or a DTP.

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Tradefair® Spreads is a trading name of London Capital Group Ltd (LCG) which is a company registered in England and Wales under registered number: 3218125. LCG is authorised and regulated by the Financial Services Authority (FSA), a member of the London Stock Exchange. Registered address: 6 Devonshire Square, London EC2M 4AB.

Tradefair® is part of the Betfair Group. TRADEFAIR® and the TRADEFAIR LOGO are trademarks of The Sporting Exchange Limited. Data on all Betfair Group website(s) (including pricing data) is protected by © and database rights. It may not be used for any purpose without a licence. Parental supervision (e.g. using NetNanny, CyberPatrol) is advised and encouraged.

*Spread bets carry a high level of risk so you should only speculate with money you can afford to lose. Stops are automatically allocated to each trade and if triggered are subject to market gaps unless you specified for your trade to be guaranteed. You can lose more than your initial deposit and stake. Before you open an account, please ensure that spread betting matches your investment objectives, familiarise yourself with the risks involved and if necessary seek independent advice. The terms bet and trade are synonymous. You will be in fact placing bets and consequently you are not entitled to the rights to the underlying instruments you would be if you were trading.