GSK Spread Betting Guide

GSK Spread Betting Guide

GSK Spread Betting Guide

arrow_forwardLive GSK Chart
arrow_forwardLive GSK Prices
arrow_forwardWhere to Spread Bet on GSK
arrow_forwardHow to Spread Bet on GSK


Live GSK CFD Chart and Prices



Where Can I Spread Bet on GSK?

Most of the spread betting brokers will offer prices and charts on shares including GSK e.g.:

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How to Spread Bet on GSK

For example, let’s imagine you are interested in spread trading on GlaxoSmithKline, you look on a financial spread betting website, such as FinancialSpreads.com, and see the real time market price at:

GSK Rolling Daily: 1421.2p – 1423.8p

This is an example of how it works

The Market GSK Rolling Daily
The Spread 1421.2p – 1423.8p
This Means That You can spread bet on the GlaxoSmithKline Rolling Daily market to move:

  arrow_upward  Higher than 1423.8p, or
  arrow_downward  Lower than 1421.2p

This market is a Rolling Daily market so it does not have a settlement date. If you haven’t closed your trade and the session ends then your trade will roll over to the next session.

Note: if a trade rolls over then you will normally either pay or receive interest for overnight financing based upon whether you are speculating on the market to go up or down.

For further information see Rolling Spread Bets.
Points (Units) Traded Trades on the GlaxoSmithKline market are made in £x per penny.

Where a penny is 1p of the share’s price movement.

E.g. if GSK moves 30p then you would win / lose 30 times your stake.
Trade Size You work out how much you would like to risk per penny, e.g. £2 per penny, £5 per penny, £15 per penny etc.
Brief Staking Example If, as an example, your stake was £2 per penny and GSK changes by 34p, you would lose or win £2 per penny x 34p = £68.


Trading Example | Taking a Bullish View of GlaxoSmithKline

Online spread betting on the UK equity to go higher

You Choose Whether to Buy or Sell GlaxoSmithKline going:

  arrow_upward  Higher than 1423.8p? or
  arrow_downward  Lower than 1421.2p?

Let’s Assume You Choose to Go Long   arrow_upward  Higher than 1423.8p
You Decide How Much to Risk, Let’s Assume You Opt For £3 per penny
What Next?
  • You make a profit of £3 for each penny GSK goes above 1423.8p
  • You will lose £3 for every penny GSK goes below 1423.8p
When You Buy a Spread Bet Your Profits (or Losses) = (Closing Price – Opening Price) x stake per penny
 
Scenario 1 GSK goes higher and the financial spread betting market is revised and moved to 1463.0p – 1465.6p.
Time to Take Your Profit? At this point, you can opt to leave your bet open or close it to lock in a profit. In this case you opt to settle your position by selling the market at 1463.0p.
Your Profits (or Losses) = (Closing Price – Opening Price) x stake per penny
(1463.0p – 1423.8p) x £3 per penny
39.2p x £3 per penny
Your Profits (or Losses) = £117.60 profit
 
Scenario 2 GlaxoSmithKline decreases and the spread betting market adjusts and moves to 1379.7p – 1382.3p.
Restrict Your Loss? You could decide to keep your trade open or close it, i.e. close your position and restrict your loss. In this case you opt to settle your bet and sell the market at 1379.7p.
Your Profits (or Losses) = (Closing Price – Opening Price) x stake per penny
(1379.7p – 1423.8p) x £3 per penny
-44.1p x £3 per penny
Your Profits (or Losses) = -£132.30 loss


Spread Betting Example | Taking a Bearish View of GlaxoSmithKline

Spread trading on the pharmaceutical giant to fall in value

You Now Decide to Go Long or Short GlaxoSmithKline to go:

  arrow_upward  Higher than 1423.8p? or
  arrow_downward  Lower than 1421.2p?

Let’s Assume You Choose to Sell   arrow_downward  Lower than 1421.2p
You Select How Much to Risk, Let’s Assume You Select £2 per penny
So Now What Happens?
  • You will lose £2 for every penny GSK pushes higher than 1421.2p
  • You make a profit of £2 for every penny GSK decreases below 1421.2p
If You Are Selling a Spread Bet Your Profits (or Losses) = (Opening Price – Closing Price) x stake per penny
 
Scenario 3 GSK slips and the market moves to 1354.1p – 1356.7p.
Lock in a Profit? At this point, you can decide to let your position run or close it, i.e. close your trade to lock in a profit. In this example you decide to close your bet and buy the market at 1356.7p.
Your Profits (or Losses) = (Opening Price – Closing Price) x stake per penny
(1421.2p – 1356.7p) x £2 per penny
64.5p x £2 per penny
Your Profits (or Losses) = £129.00 profit
 
Scenario 4 GSK rises and the spread trading market is revised and set at 1491.3p – 1493.9p.
Close and Limit Your Loss?You can decide to leave your bet open or close it, i.e. close your trade to limit your loss. For this example, you choose to settle your bet and buy at 1493.9p.
Your Profits (or Losses) = (Opening Price – Closing Price) x stake per penny
(1421.2p – 1493.9p) x £2 per penny
-72.7p x £2 per penny
Your Profits (or Losses) = -£145.40 loss


GlaxoSmithKline Notes:

  • Financial spread betting price obtained from FinancialSpreads.com as of 7 December 2011
  • Most spread betting firms also give you the option of trading on the pharmaceutical company in euros per penny and US dollars per penny

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

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