Manufacturing News Scheduled To Come Out Presents News Trade

The U.S. Federal Reserve System consists of the Federal Reserve or the central bank for the United States and 12 regional Reserve Banks.

One of the Federal Reserve Banks is the Federal Reserve Bank of Philadelphia, which takes a survey of around 250 manufacturers in their area monthly. The survey is to find out what the manufacturers think about the general business conditions.

The results of the survey are released 10:00 AM ET, Thursday, September 17, 2015. When this report is released, the EUR/USD market tends to react to this report by making a move and then pulling back.

Scheduled News Events Can Bring Implied Volatility Built In To Pricing

This kind of move is great for an Iron Condor strategy using Nadex Spreads. With scheduled news events where the market tends to pull back after a slight move, often times there will be enough implied volatility built into the prices of the spreads to provide enough profit potential for your setup.

For this trade, you want to find Nadex EUR/USD spreads that give you a combined profit potential of $25 or more. You can find the right spreads for your Iron Condor using the Spread Scanner.

For this trade you will enter two Nadex EUR/USD spreads at 9:00 AM ET, Thursday, with expiration at 11:00 AM ET. You want to buy a spread with its ceiling where the market is trading at the time and sell a spread with its floor where the market is trading at the time.

On the Spread Scanner, you can see the column of spread contracts in the middle, the left number is the floor and the right number is the ceiling.

To view larger image click HERE.

Find $25 Reward Potential In Green Area On Scanner

This profit potential of $25 may seem low; however, you can add more spreads to your trade as long as you have the same number of spreads on each side of your Iron Condor.

To find spreads with the right profit potential, you can look to the far left and far right of the scanner and see the risk/reward red/green area. There you will see the potential profit of the spreads if you were to sell or buy them.

The advantage of the Iron Condor setup is that the market can move quite a bit before you could be in a loss situation. For example, on this trade with a profit potential of $25 divided about evenly between the bottom and top spread, the EUR/USD market could move 50 pips up or down and remain in that area for a 1:1 risk reward.

Breakeven would be if the market moved 25 pips up or down. Max profit can actually be made if the market doesn’t move at all, or if it moves and then pulls back to center between your two spreads.

For every one pip away from the center the market is, that is less $1 in profit. Therefore, you can see the market has a lot of room to move around before your trade would begin to lose.

For more trade tips on scheduled news events, to learn how to trade Nadex binaries, spreads and access the spread scanner visit www.apexinvesting.com.

Apex offers free education and leading indicators with membership. Nadex can be traded from 49 countries.