Straddle the USD/CAD When The Canadian Trade Balance Is Released

Approximately 65% of Canadian exports are purchased by the U.S. On Wednesday, August 5, 2015, Statistics Canada will release the trade balance for Canada report. For the last three months, the trade balance has been negative and the actual number released has ran more in the red than was forecast. The trade balance is the difference in value between imported and exported goods during the reported month. The demand in export impacts production and the prices at domestic manufacturers.

The Straddle Is A Strategy Best Used For Significant Market Moves

This report offers a trade opportunity trading Nadex spreads using a straddle strategy. The Straddle strategy is just as it sounds: it is set up to straddle where the market is currently trading. There is a possibility to profit if the market makes a significant move in either direction. Apex Investing analyzes market moves after scheduled news events like these looking for consistency. If there are consistencies in market reaction, a high probability strategy is determined to trade future scheduled news events and is posted on the news calendar at Apex Investing.

Set Up A Straddle Using Two USD/CAD Spreads

To set up a straddle using Nadex spreads you want to trade two USD/CAD spreads. You will buy the upper spread and sell the lower spread. Your maximum risk should be around $40. To literally straddle the market with your spreads, the upper bought spread’s floor should be where the market is trading at the time of entry and the lower sold spread’s ceiling should be where the market is trading at the time of entry. Since the report comes out at 8:30 AM ET, you will be looking to enter as early as 8:00 AM with an expiration of 10:00 AM ET.

With a maximum risk of $40, the market is expected to move around 80 pips or double the maximum risk amount. Therefore, if the market moves up around 80 pips you will profit around $40 keeping your trade to a 1:1 risk reward ratio. Nadex can be traded from 49 different countries and lists binaries as well. Apex Investing offers free education on trading Nadex spreads and binaries, Forex, futures, and CFD’s. Go to www.apexinvesting.com to find out more.