ADP Non-Farm Employment Change Can Create Trade Opportunity

Automatic Data Processing, Inc., or ADP, provides payroll services to over 400,000 companies and analyzes that information to come up with estimates on employment growth.

Every month the ADP Non-Farm Employment Change news report gives an estimated employment growth number which excludes the farming industry and government.

When the report comes out, it has been found that the EUR/USD market reacts and then pulls back making for an excellent opportunity to use the Iron Condor trade strategy.

Strategy Is Low Risk And Neutral, Market Can Move Up Or Down

The Iron Condor is a low risk neutral strategy and for this trade recommendation you use Nadex EUR/USD Spreads a derivative of the EUR/USD underlying market.

The Iron Condor is low risk because the market can move a significant amount in one direction and the trade will still have a 1:1 risk reward ratio. It's not necessary for the market to move in a specific direction either, the market can move up or down and still have opportunity to profit.

In fact, all that is necessary for an Iron Condor to profit, is for the market to either stay where it is, or move and pull back as close as possible to its center.

What is the center of an Iron Condor strategy? Since it is made up of two Nadex Spreads the center of the Iron Condor would be directly between the two spreads. A Nadex spread has a floor and ceiling.

When buying a spread your profit is between your place of entry and the ceiling of the spread. When selling a spread your profit is between your place of entry and the floor of the spread.

Profit Potential Of $30 Or More

For this trade setup, you want to have a profit potential of $30 or more. To get this setup, you want to buy a lower Nadex EUR/USD Spread for around $15 with its ceiling being where the then current underlying EUR/USD is trading.

Then you want to sell an upper Nadex EUR/USD Spread for around $15 with its floor also being where the then current underlying EUR/USD is trading.

In doing this your ceiling and floor will meet and you will have made your Iron Condor with a spread on the bottom and a spread on the top. That place in the middle is where you want the market to pull back to for your greatest profit.

Analysis on 12 - 24 reports and market reaction has shown that the market makes its move and tends to pull back so hence, this strategy was recommended.

Now you can leave your trade on until expiration. You want to find your spreads and enter at 7:00 AM ET for 9:00 AM ET expirations. The US ADP Non-Farm Employment Change comes out at 8:15 AM ET, Wednesday, July 1, 2015.

Nadex can be traded from different time zones, it can be traded from 49 different countries. For a complete example of an Iron Condor trade entry to close see The Awesomeness Of An Iron Condor.

To learn more about trading in general, go to www.apexinvesting.com.