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

HSBC reports results on Monday, 29 Oct

• The chart shows the price movement last time HSBC reported: H1 Results, 6 Aug.
• The shares opened -6.8p (-0.9%) fell as lows as -9.3p (-1.3%) and rose as high as -1.8p (-0.3%).
• The shares closed -7.2p (-1%) for a daily range of 7.5p or 1%.
• Recent share price range: Oct lows 596p; Oct highs 679p. Currently 605p (at time of writing).
• Shares -24.8% from 2018 highs; +0.1% from 2018 lows; -21.0% year-to-date
• HSBC publishes Q3 Results on Monday, 29 Oct
• Will we see another big move?
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading HSBC – An Example

Let’s say you think that HSBC results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of HSBC using CFDs, at the current price of 605p. To do this, you need £2,000.

For the purpose of this example, let’s assume HSBC reports strong results and the shares rise 9%. Your profit would be £900, from your initial investment of £2,000.

Conversely, let’s assume you open the position, and place a stop-loss 3% below the current price. HSBC results miss, it falls 3% and hits your stop-loss. Your loss would be £300.

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