Is this an opportunity to take a position ahead of the results?
Rio Tinto issues a Q2 Operations Review on Tues, 16 July
- Last time Rio Tinto reported: Q1 Ops Review, 16 Apr.
- The shares traded a daily range of 2.0%.
- Shares -3.8% from 2019 highs; +35.2% from 2019 lows; +30% year-to-date.
- Currently 4848p (at time of writing).
- Will we see another big share price move on Tuesday?
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Rio Tinto – An Example
Let’s say you think that Rio Tinto results are likely to be good, and the share price is likely to rise. You decide to buy exposure to £10,000 worth of Rio Tinto using CFDs, at the current price of 4848p. To do this, you need £2,000.
For the purpose of this example, let’s assume Rio Tinto 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 5% below the current price. Rio Tinto 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.