BHP Billiton discovered potential new iron, copper and gold deposits in South Australia

• The chart shows BHP share price movements since March 2017.
• The current share price is 1496p (at time of writing).
• 27 Nov: BHP identifies potential new iron oxide, copper and gold deposit near its existing Olympic Dam operation in South Australia.
• Shares -15.8% from 2018 highs; +12.6% from 2018 lows; -1.6% year-to-date
• Recent share price range: Oct lows 1460p; Nov highs 1649p.
• Will the production update help the shares rise?
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading BHP – An Example

Let’s say you think that BHP is likely to rise as a result of this news. You decide to buy exposure to £10,000 worth of BHP using a CFD, at the current price of 1496p. To do this, you need £2,000.

For the purpose of this example, let’s assume the BHP share price rises by 10% following the news. Your profit would be £1,000, 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. BHP shares fall back 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.