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

Royal Bank of Scotland reports results on Friday, 26 Oct

• The chart shows the price movement last time RBS reported: H1 Results, 3 Aug.
• The shares opened +8.1p (+3.2%), rose as high as +9.8p (+3.9%) and fell as low as +5p (+2%)
• The shares closed +7.7p (+3.1%) for a daily range of 5.8p or 1.9%.
• Recent share price range: Oct lows 230.4p; Sept highs 264.8p. Currently 232.2p (at time of writing).
• Shares -22.7% from 2018 highs; +0.7% from 2018 lows; +16.4% year-to-date
• RBS publishes Q3 Results on Friday, 26 Oct
• Will we see another big move?
• 23 Oct: RBS will set aside £2bn funding for small and medium-sized businesses to support them through Brexit.
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Royal Bank of Scotland – An Example

Let’s say you think that RBS results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of RBS using CFDs, at the current price of 232.2p. To do this, you need £2,000.

For the purpose of this example, let’s assume RBS 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 4% below the current price. RBS 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.