A trading opportunity for you?

Will Metro Bank continue falling, or will it rise again back to recent 3,085p September highs?

• Metro Bank shares have fallen close to 20% in the past month to trade 2,354p (at time of writing).
• Shares -33.8% from 2018 highs; +7.25% from 2018 lows; -34% year-to-date.
• In latest results, Q3 profit more than doubled, but mortgage lending competition continues to pressure interest margins .
• Net Interest Margin (a key metric for banks) down to 1.77% from 1.94% previously.
• Can the stock regain recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading Metro Bank – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 3,085p. You decide to buy exposure to £10,000 worth of Metro Bank using a CFD, at the current price of 2,354p. To do this, you need £2,000.

Let’s assume Metro Bank recovers back to 3,085p (+31%). Your profit would be £3,100, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 10% from the current price. Metro Bank falls 10% and hits your stop-loss. Your loss would be £1,000.

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