A trading opportunity for you?

Will Hastings continue falling, or will it rise again back to recent 267p October highs?

• Hastings shares have fallen over 25% in the past month to trade 195p (at time of writing).
• Shares -31% from 2018 highs; +1.7% from 2018 lows; -40% year-to-date.
• In its latest trading update, the car insurance company said claims inflation is expected to outstrip premiums.
• Loss ratio (proportion of premiums “eaten up” by claims) will be at a lower end of its target range in 2018.
• Can the stock regain recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading Hastings – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 267p. You decide to buy exposure to £10,000 worth of Hastings using a CFD, at the current price of 195p. To do this, you need £2000.

Let’s assume Hastings recovers back to 267p (+37%). Your profit would be £3700, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 8% from the current price. Hastings falls 8% and hits your stop-loss. Your loss would be £800.

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