Reported Number On Canada's Foreign Securities Purchases Makes For Trade Setup

Thursday, July 16, 2015, at 8:30 AM, Statistics Canada will release the total value of domestic assets including, stocks, bonds, and money-market assets for the month. The number is released monthly around 50 days after the reported month ends. There is a direct link between the demand for domestic securities and currency due to foreigners having to buy currency to purchase domestic assets.

North American Derivatives Exchange, Nadex

To trade this news event you can use derivatives from North American Derivatives Exchange, i.e. Nadex Spreads. A spread has a floor and a ceiling therefore, you can’t profit or lose past those points depending on if you bought or sold the spread. Trading two Nadex USD/CAD Spreads sets up an Iron Condor strategy. The profit potential for this trade should be $30 or more. Therefore, buy a lower spread from around $13 or more with the ceiling being where the market is currently trading at that time. Sell an upper spread from around $13 or more with the floor being where the market is currently trading at that time. Combined, the two spreads should cost you around $30 or more. If you plotted them out on a USD/CAD chart, then your spreads should be stacked one on the other.

Scheduled News Events Can Bring Consistent Market Moves For Trading

An Iron Condor is a neutral strategy for markets that will tend to move however, not continue on but pull back. Many times for scheduled news events like this one that is exactly what happens. There is generated volatility after the news release and then the market pulls back. Based on market analysis, and looking for consistent market moves after news releases, that is what Apex Investing found was the case with this news event. Hence, the recommendation of an Iron Condor strategy.

Enter your trade at 8:00 AM for expiration at 10:00 AM. You can leave your trade on until expiration. The closer to the center of your spreads the market is at expiration the greater your profit with your highest profit being right in the center between between them. To learn more about Iron Condor trades and see an example read The Awesomeness Of An Iron Condor. For a full calendar of news trades and recommended strategies go to www.apexinvesting.com.
Nadex also offers Binaries for trade and can be traded from 49 different countries.