Time to get involved?

BP announces that it received approval to develop a new oil field.

• The chart shows BP’s share price movements since April.
• The current share price is 592p (at time of writing).
• Shares -1.3% from 2018 highs; +29.5% from 2018 lows; +13.3% year-to-date
• BP received UK regulatory approval to develop the Vorlich oilfield in the North Sea, targeting 30 million barrels of oil.
• Company expects production to start in 2020 and will invest £200m in development of the field.
• Will addition of a new oil field help BP shares break out of a recent range?

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Trading BP – An Example

Let’s say you think that BP is likely to rise as a result of this news. You decide to buy exposure to £10,000 worth of BP using a CFD, at the current price of 592p. To do this, you need £2,000.

For the purpose of this example, let’s assume the BP shares price rises by 10% following the news. Your profit would be £1,000, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. BP shares fall back 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.