How To Trade After Multiple Releases From The Bank Of England

Friday at 4:30 AM EST, January 30, 2015, The Bank of England will be releasing multiple reports regarding their interest rates and lending.

Three reports to be exact.

Traders can take advantage of the scheduled news events by trading Nadex Spreads. When there is a news event and there is a good probability of market movement but its unknown which direction the market is going to go, then trading Iron Condors is a good strategy.

The Iron Condor is great for when a market is expected to have some movement, but then settles back down, as opposed to taking off in one direction and continuing.

Apex Investing has analyzed the past two years of news trades and found the GBP/USD to react that way consistently therefore making it a good news event to trade.

The Bank of England will be releasing information on Net Lending to Individuals, the M4 Money Supply, and Mortgage Approvals. Net Lending to Individuals is the change in total value of new credit to consumers.

M4 Money Supply is the change in total quantity of domestic currency in circulation and deposited in banks. Mortgage Approvals is the number of new mortgages approved for home purchases during the previous month.

A change in new credit to consumers is correlated with consumer spending and confidence. When the debt level rises it shows consumers are confident in their financial position and not hesitant to spend money.

A change in quantity of currency circulated is positively correlated with interest rates. Early in the economic cycle an increasing supply of money leads to additional spending and investment and later in the cycle, an increase can lead to inflation.

All three reports are released at 4:30 AM EST. It is recommended to enter spreads on the GBP/USD as early as Thursday, 11:00 PM EST, January 29, for a Friday 7:00 AM EST expiration looking for a minimum profit potential of $30.

To set up an Iron Condor you will buy the lower spread and sell the upper spread. The ceiling of your lower bought spread should be where the underlying market price is trading, and the floor of your upper sold spread should also be at the underlying market price.

Therefore, the ceiling and floor of the respective spreads will have the same price. After the reports are released the market will move or bounce and then most likely settle down.

If the market returns to the center between your spreads by expiration, you will make your max profit potential. Remember you can trade multiple spreads and it is easy to set up an account with Nadex.

A complete monthly news plan is available at Apex, to trade a variety of markets based on numerous news events. If you would like to learn more on how to trade Iron Condors or trade other news events, go to www.apexinvesting.com. 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 10,000 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.