Royal Mail reports results on Thurs, 15 November

• The chart shows the price movement last time Royal Mail reported: H1 Trading Statement, 1 Oct.
• Shares opened -1.8p (-0.4%), traded as highs as +14p (+2.9%) but dropped as lows as -96.1p (-20.1%).
• The shares closed -85.7p (+18%) for a daily range of 110.1p or 23.1%.
• October’s trading statement included a profits warning due to slower growth and cost pressures
• Shares -45.3% from 2018 highs; +7.6% from 2018 lows; -24.4% year-to-date.
• Recent share price range: Oct highs 370p; Oct low 322p. Currently 342p (at time of writing).
• Royal Mail publishes first half results on Thurs, 15 Nov.
• Will we see another big move?
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Royal Mail – An Example

Let’s say you think that Royal Mail results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Royal Mail using CFDs, at the current price of 342p. To do this, you need £2,000.

For the purpose of this example, let’s assume Royal Mail reports strong results and the shares rise 10%. Your profit would be £1,000, 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. Royal Mail 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.