UK Index Up/Down-grades
An Upgrade/Downgrade trading opportunity for you?
UK Index companies Upgraded or Downgraded by brokers today:
Source: Bloomberg; Equiniti Shareview; Last updated 12 Jul
For a more detailed explanation of Upgrades/Downgrades see Link
Trading Example
Let’s say you think that a UK Index company’s shares have upside potential as result of a broker upgrade. You decide to buy exposure to £10,000 worth of shares using a CFD. To do this, you need £2,000.
For the purpose of this example, let’s assume the shares rise by 10%. Your profit would be £1,000, 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. The shares fall in spite of the upgrade, they fall 3% and hit your stop-loss. Your loss would be £300.
This is provided for information purposes only. It should not be taken as a recommendation.