Legal & General
Is this trend a good trading opportunity?
Will Legal & General turn, or will it maintain momentum towards 292p?
- Shares +6.7% from recent lows; Now trading 268p (at the time of writing).
- Will the positive momentum continue towards 292p April highs?
- Shares -8.1% from 2019 highs; +19% from 2019 lows; +16.3% year-to-date.
- 6 Jun: L&G rises after £4.6B UK bulk annuity deal with Rolls Royce
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Legal & General – An Example
Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Legal & General using a CFD, at the current price of 268p. To do this, you need £2,000.
Let’s assume Legal & General trend continues to 292p (+8.9%). Your profit would be £890, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 3% below the current price. Rolls Royce 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.