Provident Financial reports results on Tuesday, 15 Jan

• The chart shows the price movement last time Provident Financial reported: Q3 Trading Update, 19 Oct.
• The shares opened +21p (+3.8%) and traded as high as +28.8p (+5.2%).
• Shares traded as low as +18.8p (+3.4%) and closed -7p (-1.3%), for a daily trading range of 47.6p or 8.6%.
• Shares currently at 656p (at time of writing)
• Shares -18.4% from 2018 highs, +58.8% from 2018 lows, +14.3% year-to-date
• Provident Financial issues a FY Trading Update on Tuesday (15 Jan). Will we see another big move?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Provident Financial – An Example

Let’s say you think that Provident results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Provident using CFDs, at the current price of 656p. To do this, you need £2,000.

For the purpose of this example, let’s assume Provident 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 above position, and place a stop-loss 5% below the current price. Provident 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.