63.21 % of retail investors lose their capital when trading CFDs with this provider.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63.21 % of retail investors lose their capital when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Deutsche Lufthansa AG Stocks - brief description and characteristics

Description and history of Meta

Deutsche Lufthansa AG was established in 1926 and maintains its headquarters in the German city of Cologne. Deutsche Lufthansa AG is an airline that provides services not just in Germany but also around the world. The Network Airlines section of the corporation is responsible for passenger services. Its Eurowings division offers passenger flights throughout an extensive route network that spans over 100 destinations spread across more than 50 countries.
 
The Logistics Business segment of the company provides transport services for a variety of cargoes. These cargoes include general cargo, dangerous goods, valuables, vulnerable, perishables, live animals, courier, emergency, airmail/e-commerce, and temperature sensitive goods services. These services are offered to approximately 300 destinations in 100 different countries.
 
Its Maintenance, Repair, and Overhaul Services (MRO) business offers maintenance, repair, and overhaul services for civil aircraft to airlines, aircraft leasing firms, operators of VIP jets, and original equipment manufacturers (OEMs).
 
The Catering Business division of the corporation is involved in a variety of industries, including retail and food manufacturers, in addition to providing in-flight services and convenience retail. As of the 31st of December 2021, it has a total of 713 aircraft in its fleet.
 

Deutsche Lufthansa AG stock performance

With a market cap of 6.87 billion EUR, the firm had a negative profit per share (EPS) for the year 2020, and current (2022) projections indicate that this trend is expected to continue until at least 2022 or 2023. If you had bought Lufthansa stock a year ago, you would be looking at around a 6% price drop to date. The 5-year price difference is much more dramatic with an almost 65% price decrease in Lufthansa stock. You can see minor upswings during the summer season as tourism rises.
 
The company's pretax profit margin is either in the low single digits or is even negative. There is no such thing as a dividend for Lufthansa.
 
S&P Global downgraded Lufthansa to junk status (BB-), while Moody's assigned the airline a rating of Ba2.
 
The company has a long-term downtrend with with Fed’s ultra-loose monetary policy and the global COVID-19 pandemic. Travel lockdowns caused turbulent times on the aviation stock market where multiple airlines had to close their business.
 
Lufthansa stock was hit hard in September as the price plummeted by more than 30%. Since the COVID-19 pandemic, the stock has had a sideways trend which shows the loss of desire to trade.
 


 

Trading Lufthansa (LHAG) with Purple Trading

To start your Lufthansa CFDs trading, first, you need to locate the ticker LHAG on our Purple Trading MetaTrader 4 platform. To open a trade, either double-click or press the new order button, and the following window will pop up.

 


 

Lot value calculation

 

When you open our MetaTrader 4 platform and click on the LHAG ticker, you'll observe that the minimal volume for trading Lufthansa CFDs is one lot (1.0). If you trade one lot, you will gain or lose 1 EUR for each 1 EUR the stock makes as you are buying at a 1:1 ratio (1 lot equals 1 share). For example, you buy 5 lots at 5 EUR each, and LHAG goes to 6 EUR. Your total profit will be 5 EUR (calculated as 1 EUR (100 cents) movement * number of lots/shares per the move). The same logic applies to calculating your profit or loss when entering a short position.

Keep in mind that LHAG is quoted in EURO, therefore if your account is in USD or another currency, your profit or loss must be converted to USD at the current exchange rate.

You can trade at the current market price (market execution) or utilize pending orders, (limit and stop orders). You can initiate the trade without the stop-loss and take-profit orders now and add them afterward.
 

Free ebook: How to trade CFD shares?

What do you find in the ebook?

  • A general explanation of the basic principles of CFD instruments

  • A description of the specifics and advantages of trading CFD shares

  • Detailed analysis of all the attributes of shares and their explanation

  • Detailed instructions for trading CFD shares

  • BONUS: An overview of the different sectors of the stock market

 

63.21 % of retail investors lose their capital when trading CFDs with this provider.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63.21 % of retail investors lose their capital when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.