Is this breakout a good trade for you?
Will Plus500 turn, or will it continue to rise to close the gap at 696p?
- Breakout above recent highs to trade 604p (at time of writing).
- The ‘trend is your friend’. Will it continue towards 696p?
- Shares -63.7% from 2019 highs; +51.5% from 2019 lows; -55.8% year-to-date
- Shares recovering from Q1 results slump
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Plus500 – An Example
Let’s say the breakout appeals to you, you think it’s likely to continue towards 696p. You decide to buy exposure to £10,000 worth of Plus500 using a CFD, at the current price of 604p. To do this, you need £2,000.
Let’s assume the Plus500 trend continues to close the gap at 696p (+15.2%). Your profit would be £1520, 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. Plus500 breaks lower, falling 5% and it hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.