European Central Bank Press Conference Creates Trade Opportunity

Wednesday, June 3, 2015, while the US Trade Balance is also being released at 8:30 AM ET, the European Central Bank (ECB) has their Press Conference. The two news events out at the same time can significantly impact the EUR/USD. Creating quite a stir also creates trade opportunities. In this case, Apex Investing recommends another straddle entering as early as 8:00 AM ET for a 3:00 PM ET expiration. For the recommendations on the first trade see US Trade Balance Makes For Straddle Trade.

Second Part Of Conference Can Cause Heavy Volatility In Market

The ECB Press Conference scheduled for Wednesday has two parts to it. The first includes a prepared statement and the second part is the actual conference which is open to the press for questions. It’s the second part that can run long and cause heavy volatility in the market. This report is the main method for the European Central Bank to communicate with investors and the public in regards to monetary policy and interest rates.

Two News Releases Call For Straddle Strategy

Since there are two reports coming out affecting the EUR/USD at the same time, a straddle strategy is recommended. A straddle strategy is just that, it’s a strategy that straddles the market making it an effective way to make a play for profit no matter which direction the market moves. It is recommended for this straddle to set it up with a maximum risk of $45. For this trade, using Nadex EUR/USD spreads, you would BUY the UPPER spread for around $22.50 or less, and SELL the LOWER spread for around $22.50 or less. Any close combination of that would suffice. The prices need not be the same, only close and keeping to the maximum loss of $45. The lower spread ceiling should be where the then current underlying market is trading and the floor of the upper spread should be where the then current underlying market is trading.

Expiration time is 3:00 PM ET which gives your trade plenty of time to play out. Nadex can be traded from 49 different countries and offers spreads and binaries on a multitude of markets. To learn more on how to trade spreads and straddle strategies profitably visit www.apexinvesting.com.