A trading opportunity for you?

Will Royal Mail continue falling, or will it rise again back to 492p highs?

• Royal Mail shares have fallen by another 6% today.
• The shares fell 18% yesterday after a profits warnings citing higher costs
• Shares -38.1% from 2018 highs; +2% from record lows; -19% year to date
• Shares trading 370p (at time of writing) versus 492p highs of yesterday

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Trading Royal Mail – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards recent highs of 492p. You decide to buy exposure to £10,000 worth of Royal Mail using a CFD, at the current price of 370p. To do this, you need £2,000.

Let’s assume Royal Mail recovers back to 492p (+33%). Your profit would be £3300, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Royal Mail falls 5% and hits your stop-loss. Your loss would be £500.

This is provided for information purposes only. It should not be taken as a recommendation.