Spread Betting on GKN Shares (GKN.L)

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Financial Spreads: Spread Betting and CFD Trading

Where Can I Spread Bet on GKN?

Financial Spreads provides clients with a wide array of shares including GKN, Imperial Tobacco, Procter & Gamble and BNP Paribas, plus a selection of other UK, American and global shares.

Where Can I Access Live Prices for the GKN Market?

When trading with Financial Spreads investors can trade on over a thousand real time CFD trading and spread betting prices like GKN and a wide variety of other stocks, indices, commodities and FX markets.

Where Can I Get Live GKN Charts?

When trading with a Financial Spreads account clients have access to real time charts for GKN and over a thousand other markets.

The charting package has a wide variety of features:
Sample equities chart:

Shares Spread Betting Charts



A Guide to Spread Trading on GKN

As an example, let's suppose you sign into the FinancialSpreads website and the live price is:

  GKN Rolling Cash Sell

379.03
Buy

379.77


Here is an example of how it works:

Market:GKN Rolling Cash
The Spread:379.03p - 379.77p
How the Trade Works:You can trade on the GKN Rolling Cash market moving:

  Spread Betting Above 379.77p, or
  Spread Betting Below 379.03p

This is a 'Rolling' trade which means that there is no expiry date. If you haven't closed your trade and the session ends then your position will roll over to the next trading session.

Note that if a trade does roll over then you will either be credited or charged for overnight financing based on whether you are speculating on the market to fall or rise. To learn more also see Rolling Spread Bets.
Traded Units:Financial spread bets on the GKN market are priced in £x per penny price movement.

E.g. if GKN moves 50p then you would lose or win 50 times your stake.
Trade Size:You work out how much you want to risk per penny, e.g. £2 per penny, £5 per penny, £15 per penny etc.
Brief Example:If, for example, your stake was £3 per penny and GKN moves by 26p, you would gain or lose £3 per penny x 26p = £78.


Worked Spread Betting Example - Taking a Bullish View of GKN

Spread trading on the UK equity to go up in value

You Now Choose Whether to Buy or Sell: GKN to move:

  Spread Betting Above 379.77p? or
  Spread Betting Below 379.03p?

Let's Say You Choose to Buy:   Spread Betting Above 379.77p
You Choose Your Stake Size, Let's Assume You Choose: £20 per penny
So Now What?
  • You win £20 for every penny GKN moves above 379.77p
  • You will lose £20 for each penny GKN falls below 379.77p
When You Buy a Market Your Trading P&L = (Settlement Price - Opening Price) x stake
 
Situation 1
GKN pushes higher and the market changes to 388.12p - 388.86p, therefore you would see:   388.12   388.86
Time to Lock in a Profit? At this point, you could decide to leave your spread bet open or close it and lock in your profit. For this example, you choose to settle your bet by selling the market at 388.12p.
Your Trading P&L = (Settlement Price - Opening Price) x stake
(388.12p - 379.77p) x £20 per penny
8.35p x £20 per penny
Your Trading P&L = £167.00 profit
 
Situation 2
GKN moves lower and the spread trading market is adjusted and moved to 370.28p - 371.02p, therefore you would see this on Financial Spreads:   370.28   371.02
Time to Restrict Your Loss? You can decide to keep your bet open or close it and limit your loss. In this instance you choose to close your trade and sell at 370.28p.
Your Trading P&L = (Settlement Price - Opening Price) x stake
(370.28p - 379.77p) x £20 per penny
-9.49p x £20 per penny
Your Trading P&L = -£189.80 loss


Worked Spread Trading Example - Selling GKN

Financial spread betting on the UK equity to decrease

You Consider Whether to Go Long or Short: GKN going:

  Spread Betting Above 379.77p? or
  Spread Betting Below 379.03p?

You Might Choose to Go Short:   Spread Betting Below 379.03p
You Choose How Much to Risk, Choosing: £15 per penny
So What Next?
  • You will lose £15 for each penny GKN increases higher than 379.03p
  • You win £15 for each penny GKN pushes lower than 379.03p
If You Are Selling a Market Your Trading P&L = (Opening Price - Settlement Price) x stake
 
Situation 3
GKN drops and the financial spread betting market adjusts and moves to 366.20p - 366.94p. I.e. you would see:   366.20   366.94
Time to Take Your Profit? At this point, you may choose to keep your bet open or close it and take a profit. In this instance you decide to close your bet and buy at 366.94p.
Your Trading P&L = (Opening Price - Settlement Price) x stake
(379.03p - 366.94p) x £15 per penny
12.09p x £15 per penny
Your Trading P&L = £181.35 profit
 
Situation 4
GKN moves higher and the spread betting market is revised and is set at 392.03p - 392.77p, so you'd see:   392.03   392.77
Time to Limit the Loss?You can decide to keep your spread bet open or close it, i.e. close your spread bet to restrict your losses. In this case you opt to close your position and buy the market at 392.77p.
Your Trading P&L = (Opening Price - Settlement Price) x stake
(379.03p - 392.77p) x £15 per penny
-13.74p x £15 per penny
Your Trading P&L = -£206.10 loss

Where Can I Practice Financial Spread Betting on GKN?

FinancialSpreads offer a free Practice Account where investors are able to practice CFD trading and spread betting, analyse live charts, test new trading orders and test new trading theories etc. on markets including GKN.

The Financial Spreads Demo Account comes with more than the market above; traders are also able to get trading experience on a range of stocks and shares, stock market indices, commodity markets and forex.

Open a Spread Betting and CFDs Demo Account


More on GKN plc (GKN)



A common ticker code for GKN is 'GKN' however 'GKN.L' and 'LON:GKN' are also used.

For more news and information on the UK firm, also see: Financial Spreads is not responsible for the content of external / third party websites.


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support@financialspreads.com

Also see:
80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Spread betting & CFDs trading are complex instruments & come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading these products with this provider. You should consider whether you understand how these products work & whether you can afford to take the high risk of losing your money. Click here to see the risk warning notice.