Market Overview

How 1 Trader Is Playing Thursday's GBP Trade Balance Report


The Office for National Statistics will release the GBP Trade Balance Thursday, April 9, at 4:30 AM ET.

The balance is the difference in value between imported and exported goods from the previous month. On occasion this report can cause traders to react strongly. Usually, however, it was found that the market has a mild reaction. 

GBP/USD spreads at North American Derivatives Exchange, or Nadex, are one option, particularly if investors wish to enter the night before.

Implied Volatility In Pricing

If the spreads used have $30 profit potential or more and the market moved up or down 30 pips and remained there until expiration, the trade would break even. For a 1:1 max risk reward ratio the market could move 60 pips and remain there until expiration.

The Average Move Analyzed Over 24 Months

Apex Investing has analyzed the average move of the GBP/USD after this report for the past 24 months, and found that it moved an average 30 pips and returned.

Following its average pattern, if the market moved after the report and pulled back, the closer to the center between the two spreads the market came at expiration, the greater the profit.

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