Hiscox
Is this trend a good trading opportunity?
Will Hiscox turn, or will it maintain momentum to 1723p November highs?
- Shares +9% since late Jan.
- 3 Jan: UBS says London insurers like Hiscox are among the best picks in a subdued market.
- Now trading 1524p (at the time of writing).
- Will the positive momentum continue towards 1723p November highs?
- Shares -6.1% from 2019 highs; +7.9% from 2019 lows; -5.95% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
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Trading Hiscox – An Example
Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Hiscox using a CFD, at the current price of 1524p. To do this, you need £2,000.
Let’s assume Hiscox trend continues to 1723p November highs (+13%). Your profit would be £1300, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 5% below the current price. Hiscox 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.