When we're diving into the world of trading, one of the key metrics we often look at is the change in price, typically expressed as a percentage. This figure can tell us a lot about market trends and help us make informed trading decisions.
Calculating the percentage change in price is straightforward. Here’s a simple breakdown:
- Take the current price and subtract the previous price.
- Divide that result by the previous price.
- Finally, multiply by 100 to get the percentage.
For example, if a stock was priced at £100 and rises to £110, the calculation would look like this:
- £110 - £100 = £10
- £10 ÷ £100 = 0.1
- 0.1 × 100 = 10%
This means the price has increased by 10%. Understanding this percentage can be a game-changer in your trading strategy, helping you identify trends and make educated decisions.
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