Get Ready To Set Up Some Trades For FOMC Statement Wednesday

Scheduled only eight times a year, the FOMC Statement can cause a stir in the markets. When the Federal Open Market Committee meets, they go over the state of the economy and decide interest rates.

The Federal Reserve releases the Statement which communicates the vote outcome on interest rates and the committee’s views on the economic conditions.

The Fed Funds Rate, the interest rate banks lend balances held at the Federal Reserve to other banks overnight, is released right after the statement.

The FOMC has the influence to move many forex markets, including:

• AUD/USD,
• EUR/USD,
• GBP/USD,
• USD/CAD,
• USD/CHF,
• and the USD/JPY making for a variety of trade options for these markets.

Nadex Spreads Have Defined Limited Risk For Your Trades

The FOMC Statement and Federal Funds Rate is scheduled for release on Wednesday, July 29, 2015, at 2:00 PM ET. Based on analysis from market moves after previous reports, it was found that an Iron Condor strategy works well for this scheduled news event.

Using Nadex Spreads, you would enter two spreads at the same time on one market to create your Iron Condor.

A spread has a floor and a ceiling and depending on if you bought or sold the spread, you can’t lose past the ceiling if you sold it or past the floor if you bought it. Therefore, a Nadex Spread has defined limited risk.

To set up an Iron Condor, you buy the lower spread, with the ceiling where the market is trading at that time, and you sell an upper spread with the floor where the market is trading at that time.

With this setup the ceiling of the lower bought spread should meet the floor of the upper sold spread. Below are tables showing the market, time of entry, expiration time and minimum profit potential for possible Iron Condor setups.

3 Hours Before Release

To view image larger click HERE.

90 Minutes Before Release

To view image larger click HERE.

60 MInutes Before Release

To view image larger click HERE.

30 Minutes Before Release

To view image larger click HERE.

If the above setup parameters aren’t able to be met then go on to the next trade. You can leave your trades on until expiration to give it time to play out.

The market tends to react right after the statement is released and then pulls back.

The highest profit is made when the market returns to the center of the Iron Condor meeting both sides max profit.

To understand more on Iron Condors, see The Awesomeness Of An Iron Condor. Apex Investing provides free education for day trading.

To learn more visit www.apexinvesting.com. Nadex can be traded from 49 different countries.