GVC
A trading opportunity for you?
Will GVC continue falling, or will it rise again back to November high of 973p?
- GVC shares have fallen close to 19% from November’s highs.
- Bookmaker shares are under regulatory pressure over increasing taxes and changing gambling rules.
- Currently trading at 789p (at time of writing).
- Shares -33.5% from 2018 highs; now trading at 2018 lows; -14.3% year-to-date.
- Recent share price range: Nov lows 781p; Nov highs 973p.
- Can the stock recover to yesterday’s highs?
- Source: Dow Jones, Bloomberg, FT, Company News
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Trading GVC – An Example
Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 973p. You decide to buy exposure to £10,000 worth of GVC using a CFD, at the current price of 789p. To do this, you need £2,000.
Let’s assume GVC recovers back to 973p November high (+23.3%). Your profit would be £2330, from your initial investment of £2000.
Conversely, let’s assume you open the above position, and place a stop-loss at 9% from the current price. GVC falls 9% and hits your stop-loss. Your loss would be £900.
This is provided for information purposes only. It should not be taken as a recommendation.