Cairn Energy announces 15-55m barrel oil discovery in North Sea

• The chart shows the Cairn share price movements since May.
• The current share price is 194.2p (at time of writing).
• Cairn announces oil discovery on 9/14a-17B well in North Sea, estimating recoverable resources of 15-5m barrels
• Shares -30.8% from 2018 highs; +4.5% from 2018 lows; -9.2% year-to-date
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Cairn – An Example

Let’s say you think that Cairn is likely to rise as a result of this news. You decide to buy exposure to £10,000 worth of Cairn using a CFD, at the current price of 194.2p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Cairn  share price rises by 20% following the news. Your profit would be £2,000, 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. Polymetal 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.