Trading Nadex Spreads Into The News: Employment Data For U.S.

On Wednesday, December 3, 2014, the ADP National Employment Report will be released. This is a report released by ADP, a company formerly known as Automatic Data Processing and it is based on the payroll data of approximately 400,000 U.S. business clients. This report is released two days prior to when the U.S. government will release their data. It is a good predictor of what will be in the government’s non-farm payroll report. If there is any change in this indicator, it can be very volatile.

The previous reading for this report came in at 230 K and the forecast for Wednesday is 223 K. If the reading is higher than expected, it should be regarded as positive or bullish for the USD. If it comes in lower than expected, then it would indicate a negative or bearish signal for the USD.

A recommended news trade for this event is an Iron Condor. Remember that an Iron Condor is when you enter two Nadex Spreads with the same expiration times. You buy the lower spread and sell the upper spread. You want the floor of the upper spread to be equal to the ceiling of the lower spread. The instrument to use is the EUR/USD. Because this report is being released at 8:15 AM, you can enter as early as 7:00 AM with an expiration of 9:00 AM. Look for a minimum profit of $30.

To read a related article on trading Iron Condors, click HERE.

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