A trading opportunity for you?
Will Hiscox break support, or will it rise again to 1700p?
- 1410p support since last March, 3 bounces to trade 1489p (at time of writing).
- Will the pattern repeat, the shares climbing back towards 1700p highs?
- Shares -14.9% from 2018 highs; +14.5% from 2018 lows; -8.7% year-to-date.
- 3 Jan: UBS says London market insurers better placed than European peers
- 3 Jan: Canaccord says flat renewal prices not an issue for Lloyd’s insurers
- Promoted to FTSE100 in December
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Hiscox – An Example
Let’s say you like the Hiscox chart and you think the price is heading back towards 1700p again. You decide to buy exposure to £10,000 worth of Hiscox using a CFD, at the current price of 1489p. To do this, you need £2,000.
Let’s assume Hiscox rises back to 1700p (+14.1%). Your profit would be £1410, 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. Hiscox falls 5% and hits your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.