RBS
A trading opportunity for you?
Will Royal Bank of Scotland continue falling, or will it rise again back to recent 254p highs?
- RBS shares have fallen over 12% in the past 2 days to trade 218p (at time of writing).
- Shares -26.3% from 2018 highs; now trading at 2018 lows; -21.35% year-to-date.
- Now trading at its lowest level since January 2017.
- Brexit uncertainty and the fate of PM May’s leadership is hurting UK Index Banks.
- RBS is particularly exposed due to having a large government stake.
- Can the stock regain recent highs?
- Source: Dow Jones, Bloomberg, FT, Company News
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Trading RBS – An Example
Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 254p. You decide to buy exposure to £10,000 worth of RBS using a CFD, at the current price of 218. To do this, you need £2000.
Let’s assume RBS recovers back to 254p (+16.5%). Your profit would be £1650, 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. RBS 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.