A trading opportunity for you?

Will Auto Trader continue falling, or will it rise again back to 471p recent highs?

• The price has fallen close to 2% today.
• Shares have recently been on momentum, +30% year-to-date.
• Trading close to 2018 highs (-1% away from highs), +41.7% from 2018 lows.
• Traders are taking profits after strong uptrend, leading to a sell-off.
• It has been as high as 471p in September, and as low as 452p. It is now at 458p.

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Trading Auto Trader – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards recent high of 471p. You decide to buy exposure to £10,000 worth of Auto Trader using a CFD, at the current price of 458p. To do this, you need £2,000.

Let’s assume Auto Trader recovers back to 471p. Your profit would be £280, 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. Auto Trader 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.