Friday Morning Trade On Canadian Employment And Unemployment News

Friday at 8:30 a.m. ET, the Canadian Employment Change and Unemployment Rate will be released, producing a trade opportunity with the right Nadex using an Iron Condor setup. The Iron Condor is a neutral premium collection trade, a strategy for profiting when the market moves and pulls back.

For this trade, one could buy a Nadex USD/CAD spread, with the ceiling of where the market is trading at the time, and sell a Nadex USD/CAD spread with the floor being at where the market is trading at the time. The profit potential for each spread should be around $17 or more, for a combined profit potential of $35 or more.

Entry can be as early as 7:00 a.m. ET for the two-hour 9:00 a.m. ET spreads. 

Stops should be placed where the market would hit the 1:1 risk/reward ratio points, at approximately 70 pips above or below where the market was at entry. Maximum profits can be reached when the market is right between the spreads at settlement. Every pip away equates to $1 less in profit. This is unlike trading binaries, which have an all-or-nothing payout unless the trader exits early.