Pearson reports FY results on Friday, 22 Feb

• Last time Pearson reported: FY Trading Update, 16 Jan.
• The shares closed -6.0% for a daily range of 50.6p or 5.2%.
• Shares -13.7% from 2019 highs; trading at 2019 lows; -4.9% year-to-date.
• Currently 900p (at time of writing).
• Will we see another big share price move on Friday?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Pearson – An Example

Let’s say you think that Pearson results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Pearson using CFDs, at the current price of 900p. To do this, you need £2,000.

For the purpose of this example, let’s assume Pearson reports strong results and the shares rise 10%. Your profit would be £1000, from your initial investment of £2,000.

Conversely, let’s assume you open the position, and place a stop-loss 5% below the current price. Pearson results miss, it 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.