US Trade Balance Release Makes For Straddle Trade

Wednesday, June 3, 2015, the Bureau of Economic Analysis will release the US trade balance. This is a percentage number that tells the difference in value between imported and exported goods and services for the reported month. The report is released monthly and if it is positive then more goods and services were exported than imported. Last report came out May 5, and was -51.4 Billion. This month’s report is forecast to be -43.9 Billion.

Enter At 7:00 AM ET For 3:00 PM ET Expiration

To trade this news event, it is recommended to use Nadex EUR/USD Spreads and set up a straddle strategy. Nadex stands for North American Derivatives Exchange which offers spread and binary derivatives of various underlying markets available for trading from 49 different countries. The Trade Balance is released at 8:30 AM ET. You can enter as early as 7:00 AM for a 3 PM expiration.

Straddle The Market With Two Nadex EUR/USD Spreads

A straddle strategy is used for when a market is expected to make somewhat of a significant move and then possibly continue at that level or pull back slightly. Two spreads are used to straddle the market. You want to BUY the UPPER spread and SELL the LOWER spread. The ceiling of your lower spread should be where the then current underlying market is trading when you enter at around 7:00 AM ET. The floor of your upper spread should also be where the then current underlying market is trading at around 7:00 AM ET. Your maximum risk for this trade should be around $40. To do this, you want to buy the upper spread for around $20 or less and sell the lower spread for around $20 or less.

Since the expiration time would be 3 PM ET, this will give your trade plenty of time to play out. Apex Investing researches market moves after various news events for 12 - 24 past reports and from the results sets up a news calendar for trades with recommended strategies. To find out more visit www.apexinvesting.com.