A range trading opportunity for you?
Will BP break lower, or will it rise back again to 583p?
- 6 month range; Now trading 519p (at time of writing)
- Will the pattern repeat itself, rising to the ceiling at 583p?
- Shares -11% from 2019 highs; +1% from 2019 lows; -7.65% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading BP – An Example
Let’s say you like the range, you think it’s heading towards 583p. You decide to buy exposure to £10,000 worth of BP using a CFD, at the current price of 519p. To do this, you need £2,000.
Let’s assume BP rises to 583p (+10%). Your profit would be £1000, 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. BP 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.