A trading opportunity for you?

Will Vodafone continue falling, or will it rise again back to 171.5p September highs?

• Vodafone shares have fallen over 5% in the past week to trade 153p (at time of writing)
• Shares -35.5% from 2018 highs; currently trading at 2018 lows; -34.9% year-to-date
• Shares are falling after broker Jefferies downgraded the company to Hold, questioning the viability of Vodafone’s dividend payout strategy.
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading Vodafone – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 171.5p. You decide to buy exposure to £10,000 worth of Vodafone using a CFD, at the current price of 153p. To do this, you need £2,000.

Let’s assume Vodafone recovers back to 171.5p (+12%). Your profit would be £1,200, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 10% from the current price. Vodafone falls 10% and hits your stop-loss. Your loss would be £1,000.

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