Diploma
A range trading opportunity for you?
Will Diploma break support, or will it rise back to 1600p (+12%)?
- 1407-1600p sideways range; Now trades 1417p (at time of writing)
- Will the pattern repeat itself, testing the ceiling at 1600p (+12%)?
- Shares -14.3% from 2019 highs; +23.9% from 2019 lows; +17.1% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Diploma – An Example
Let’s say you like the range, you think it’s heading back up towards 1600p again. You decide to buy exposure to £10,000 worth of Diploma using a CFD, at the current price of 1417p. To do this, you need £2,000.
Let’s assume Diploma rises to 1600p (+12%). Your profit would be £1200, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Diploma falls 3% and hits your stop-loss. Your loss would be £300.
This is provided for information purposes only. It should not be taken as a recommendation.