A trading opportunity for you?

Will Royal Bank of Scotland continue falling, or will it rise again back to recent 264p September highs?

• Royal Bank of Scotland shares have fallen over 10% in the past 3 weeks to trade 223p (at time of writing).
• Shares -23% from 2018 highs; +2.6% from 2018 lows; -20% year-to-date.
• Latest Q3 results were mixed, with the Bank beating market expectation on revenue, but missing on attributable profit.
• Operating costs rose due to £200m in PPI charges.
• RBS set aside additional £100m impairment for uncertain economic outlook and £60m for Irish business.
• Can the stock regain recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading RBS – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 264p. You decide to buy exposure to £10,000 worth of RBS using a CFD, at the current price of 223p. To do this, you need £2000.

Let’s assume RBS recovers back to 264p (+18.3%). Your profit would be £1830, from your initial investment of £2000.

Conversely, let’s assume you open the above position, and place a stop-loss at 8% from the current price. RBS falls 8% and hits your stop-loss. Your loss would be £800.

This is provided for information purposes only. It should not be taken as a recommendation.