Are You Up For Trading the Quarterly US Final GDP?

Quarterly, the Bureau of Economic Analysis releases the US Final GDP. For this past quarter, the report will be released Tuesday, December 22, 2015, at 8:30 AM ET. This report is the widest measure for economic activity and of the economy’s health. It can also be traded using Nadex EUR/USD spreads and an Iron Condor strategy. The numbers are a measurement of the annualized change in the inflation-adjusted value of all goods and services produced in the economy.

Nadex, a US based CFTC regulated, exchange provides the opportunity to trade the markets using spreads and binaries with capped risk. For this trade it is recommended to use Nadex EUR/USD spreads. Based on previous reports released and market reaction, an Iron Condor was found to be the high probability strategy. Enter two spreads: sell one above the market with its floor where the market is trading at the time, and buy one below the market with its ceiling where the market is trading at the time. You want a $35 profit potential or more.

With spreads, the total amount of your risk is what you put up to enter the trade. Once the trade is exited, you get the amount you put up for the trade back, plus or minus your profits or losses. For this strategy, it may seem like a great deal to put up and risk for the trade for only a $35 profit. However, with stops you will be managing your risk and only risking up to the 1:1 max risk/reward ratio.

To find the right spreads for your trade, just open the spread scanner, which lists all the markets available and the various Nadex contract spreads. Below is an image with a list of EUR/USD spreads.

To view a larger image click HERE.

To find the spreads with the right ceiling/floor parameters, look in the center of the scanner. There you see the floor and ceiling numbers of the spreads. The reward potential is listed to the far left for selling the spreads and the far right for buying the spreads. Once you have the right spreads, be sure each of them has around $17 or more of profit potential for a combined profit potential of $35 or more.

You can enter as early as 8:00 AM ET for 10:00 AM ET expirations. For this news release, the market tends to move and pull back or just range and therefore the Iron Condor strategy works well. As long as the market is within the price you sold your top spread and price your bought your bottom spread at expiration, you will make some profit. Max profit is when the market returns to center between your spreads at expiration. Alternatively, the market can move allowing one side to profit and then it can pull back for the other side to make some profit also.

Your stops should be placed where the market would be if it moves 70 pips up or down. That is where one side of your trade will profit but the other will lose enough to meet the 1:1 max risk reward.

To learn more about Iron Condors and other news strategies along with a full news calendar, visit www.apexinvesting.com. There you can access the spread scanner. To open a demo or live account with Nadex, visit www.nadex.com .