Is this an opportunity to take a position ahead of the results?

London Stock Exchange reports results on Friday (19th Oct)

• The chart shows the price movement last time London Stock Exchange reported: half-year results, 2 Aug.
• Revenue rose 11% YoY thanks to growth across all of the financial platform’s business areas.
• London Stock Exchange also increased its interim dividend by 19% to 17.2p.
• Shares opened 93p higher (+2.1%), rising as high as +163p (+3.7%), closing the session +140p (+3.2%); daily range 107p (2.5%).
• Shares -12.8% from 2018 highs; +16.2% from 2018 lows; +12.4% year-to-date.
• Recent share price range: Oct lows 4,000p; Oct highs 4,603p. Currently 4,262p (at time of writing).
• London Stock Exchange reports Q3 revenues on Friday (19th Oct).
• Will we see another big move?

Click to enlarge

Trading London Stock Exchange – An Example

Let’s say you think that London Stock Exchange results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of London Stock Exchange using CFDs, at the current price of 4,265p. To do this, you need £2,000.

For the purpose of this example, let’s assume London Stock Exchange reports strong results and the shares rise 8%. Your profit would be £800, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss 4% below the current price. London Stock Exchange results miss, it falls 4% and hits your stop-loss. Your loss would be £400.

This is provided for information purposes only. It should not be taken as a recommendation.