A Scheduled AUD/USD Trade For Your Evening Pleasure

Economies love spending of the retail kind. It’s what makes them go and Australia’s economy is no exception.

The Australian Bureau of Statistics will release the change in the total value of sales at the retail level come Thursday evening at 9:30 PM ET, on October 1, 2015. For news events like these that are scheduled, an Iron Condor strategy works great to capture profit.

The added bonus is you can trade it in the evening and it doesn’t interrupt any daily work schedule that you may have. This is typical of news trades for Australia given the time differences between the U.S. and Australia.

Nadex, A U.S. Regulated Exchange

For an Iron Condor strategy, you want to trade Nadex spreads. Nadex, or North American Derivatives exchange, is located in Chicago and is regulated by the CFTC. Nadex lists binary options and spreads for trading many indices, forex, and commodities including AUD/USD.

This trade needs two spreads, a lower spread, which you buy with the ceiling where the market is trading at the time and an upper spread, which you sell with the floor where the market is trading at the time.

The profit potential for this trade setup is $25 or more.

An AUD/USD Trade

Scheduled news trades like these are great for trading because any kind of consistent moves the market makes after the report release can be tracked.

For this report, it was found after analysis over 12 - 24 months that the AUD/USD can move after the release and then will pull back or doesn’t react much at all. For this kind of movement, a neutral Iron Condor is a good strategy that can profit when the market stays flat, or moves and pulls back, and the direction of market movement is unknown.

To find just the right spreads you can use the spread scanner. With just a few clicks on the filters, you can focus in on the possible spreads. The actual spread contracts will be in the center. You want to enter at 9:00 PM ET for 11:00 PM ET expiration.

To find the right profit potential of $25 combined, look at the risk/reward area on the far left and the far right. There you will see in the green area the amount of max possible profit for that spread.

Below you can see an example of the spread scanner showing contracts for AUD/USD.

To view larger image click HERE.

If $25 doesn’t seem like much, you can always trade more spreads. Keep the same number of spreads on each side and enter both sides at the same time. You can leave the trade on until expiration to give it time to play out.

One side may profit and then the market can move and the other side can profit. For this trade the market can move 50 pips up or down and it will still be within a 1:1 risk reward ratio.

When the markets settle right in the middle between your two spreads you achieve max profit.

To learn more about how to trade Nadex and for access to the spread scanner, visit www.apexinvesting.com.

Nadex can be traded from 49 different countries.