Will 3i continue falling, or will it rise again back to recent 879p last week’s highs?

• 3i shares have fallen over 9.6% in 1 week to trade 774p (at time of writing).
• Shares already off 760p yesterday’s lows, bounced +1.8%.
• Shares -26.5% from 2018 highs; +1.8% from 2018 lows; -15% year-to-date.
• 15 Nov: Investment company reported +8.7% first-half pre-tax profit and raised dividend +87%
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading 3i – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 879p. You decide to buy exposure to £10,000 worth of 3i using a CFD, at the current price of 774p. To do this, you need £2,000.

Let’s assume 3i recovers back to 879p (+13.5%). Your profit would be £1350, 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. 3i 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.