News Trade For The Evening

The evening is a great time to trade the AUD/USD, which is when all the news comes out for Australia providing some volatility to the market. Wednesday, December 9, 2015, at 7:30 PM ET, the Australian Board of Statistics will release employment and unemployment information. As is the case in most countries, this information is a leading indicator for consumer spending and therefore, the economy. The Employment Change is a number for the change in the number of employed people during the previous month. The Unemployment Rate is a percentage of total work force that is actively seeking employment during the previous month.

Based on the last 12 - 24 market reactions to the release of this information, it was determined that an Iron Condor strategy using Nadex AUD/USD spreads can work well. Nadex spreads provide capped risk. The spreads have a floor and a ceiling of the range in the market, which you cannot win or lose beyond; depending on the direction you traded the spread. For this trade strategy, buy a spread range below the market with the ceiling being where the market is trading at the time, for a profit potential of around $17 or more. You will also sell a spread range above the market with the floor being where the market is trading at the time, for a profit potential of around $17 or more. You want the two spreads to equal a combined profit potential of $35 or more.

You Don’t Actually Risk The Full Max Risk

To enter a spread you put up the max risk. For this trade strategy, the max risk may seem like a lot of risk. However, that is not the amount you will be planning to risk. You will manage your risk with stops or by manually exiting. To do this for an Iron Condor, you need to know the 1:1 max risk reward. For this trade, based on a $35 profit potential and depending on your exact entries, if the market moves up or down 70 pips, those are your 1:1 risk reward points and where you should exit both sides of your trade. At that point, one side will have won approximately $17 and the other will have lost approximately $53 for a total loss of around $35, the amount of your potential profit. For your breakeven points, the market can go up or down approximately 35 pips, depending of course on your exact entries.

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This trade can be entered as early as 6:00 PM ET for 11:00 PM ET expiration. You can use the spread scanner accessible from www.apexinvesting.com to find your Nadex AUD/USD spreads easily and quickly. Just be sure to have a Nadex demo or live account and be logged in. It’s simple to open an account at Nadex. Nadex is a US based exchange regulated by the CFTC and can be traded from 49 different countries. You can exit any of your trades at any time as well. Be sure to always demo trade and get your execution down before entering a live trade.

Typically, for this trade event, the market may make a move, react and then pull back or it may range. This is what you want it to do. As long as the market is anywhere between your break even points at expiration, your trade will profit, which is 35 pips up or down from the time of entry, a range of 70 pips. That is a nice wide range for profit opportunity.

To learn more about how to trade Nadex binaries and spreads, or forex, futures or CFD’s just visit www.apexinvesting.com.