RBS
A trading opportunity for you?
Will Royal Bank of Scotland break support, or will it rise again back to 264p September highs?
- Royal Bank of Scotland has bounced off July support zone around 239p
- Bounced 6 times, most recently yesterday.
- Now trading 241p (at time of writing)
- The bank is set to report results next week.
- Major US banks have reported strong results this quarter, will UK banks follow suit?
- Shares -20.5% from 2018 highs; +1.5% from 2018 lows; -13.2% year-to-date
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading Royal Bank of Scotland – An Example
Let’s say you like the Royal Bank of Scotland range, you think it’s heading back towards 264p again. You decide to buy exposure to £10,000 worth of Royal Bank of Scotland using a CFD, at the current price of 241p. To do this, you need £2,000.
Let’s assume Royal Bank of Scotland rises back to 264p (+9.5%). Your profit would be £950, 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. Royal Bank of Scotland 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.