US Unemployment Rate and NFP/Payroll Report: Trading Iron Condor/Butterfly/Straddles Into the News Using Nadex Spreads and Binaries: October 3, 2014

On Friday, October 3, 2014, the US Unemployment Rate as well as the Nonfarm Payroll report will be released at 8:30 AM. There are many Forex pairs that you can trade Iron Condors using Nadex Spreads, or Iron Butterflies using Nadex Binaries into the news. For the US Unemployment Rate, a higher than expected reading should be taken as negative or bearish for the USD, while a lower than expected reading is positive or bullish for the USD. The opposite is true for the Nonfarm Payroll. If it is higher than expected, it’s positive or bullish. Lower than expected readings mean that it should be taken as negative or bearish for the USD.

Although most of the movement on the NFP report usually happens in the first 15 minutes after the news report is released, you will want to go for as much time as you can get. To potentially get the most from this announcement, enter the trade as early as 7 AM but no later than 8:15 AM, and look for the 3 PM expiration. Use an Iron Condor to capture the movement if you expect the market to go one direction and then back to where it is pre-news. Use a straddle if you expect a lot of movement, where you can take profit and get out.

Here are the Forex pairs you should look at to place your Iron Condors and Straddles. This also lists the range the particular instrument has moved on this announcement over the last two years, as well as what would be an ideal potential profit.
AUD/USD The range over the last two years has been 60 pips; ideally, it is good if you can get a minimum of 50 pips/profit.
EUR/USD Range: 100 pips; look for at least 60 minimum pips/profit.
GBP/USD Range: 100 pips; look for minimum 70 pips/profit.
USD/CAD Range: 75 pips; go for at least 60 pips in minimum profit.
USD/CHF Range: 92 pips; 60 pips in minimum profit is the goal.
USD/JPY Range: 80 pips; 60 pips/profit is the ideal for this instrument.

When doing an Iron Condor, you want to buy a lower contract and sell an upper contract and hopefully profit in the middle. This strategy also covers you if the market goes either direction after the news comes out.

When doing a Straddle, you want to sell a lower Nadex spread and buy an upper spread.

Often the market will remain flat between 11 AM and 3 PM making that a great time to place some Iron Butterfly trades on FX.

It is also possible to do advanced straddles using EUR/CAD and the GBP/CAD. This provides the biggest move 90 percent of the time.

To learn more about placing the advanced straddles as well as other strategies, go to www.apexinvesting.com, a service provided by Darrell Martin. Apex Investing Institute offers free education, and free access to the Nadex Binary and Spread Scanner Analyzers. Member traders are invited to trade in the rooms, take advantage of trade signal services, have key indicators and access the Apex Forum. The forum content is updated daily and includes over 8000 members. In a supportive learning community of seasoned as well as up and coming traders, traders of all levels learn how to trade Nadex binaries and spreads in depth, as well as futures, forex, stock and options, and gain an edge for successful trading overall.