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

IG Group is due to report results this Thursday, 20th September

• The chart shows the price movements last time IG Group reported.
• The last time IG Group issued results in late July, the share price moved as high as 893p, up 40p.
• Shares rose after IG Group reported that FY profit rose 31% YoY, though the dividend was frozen.
• IG Group will issue Q1 results on Thurs, 20 Sept
• Recent share price: 1 month lows were at 849p. 1 month high at 956p. Currently at 868p (at time of writing).

Click to enlarge

Trading IG Group – An Example

Let’s say you think that IG Group results are likely to be good, and the price is likely to rise. You decide to buy exposure to £10,000 worth of IG Group using a CFD, at the current price of 868p. To do this, you need £2,000.

For the purpose of this example, let’s assume IG Group reports strong results and the share price rises by 4%. Your profit would be £400, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price of 868p. IG Group 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.