**SAVE FOR WEEK**Trade The Swiss Trade Balance The Night Before Release

When a country exports more than it imported in a given month, then the trade balance is determined as positive. This is good for the country’s companies that export, obviously, but it is also good for its currency as the number of exports for a country is directly linked to the demand for its currency. The Swiss Trade Balance is released at 2:00 AM ET, Tuesday, September 22, 2015. Foreigners must pay for Swiss goods in Swiss francs so it is good for the currency if imports are up. To trade this event though, it doesn’t matter if the report is good for currency or not and it won’t matter if the market goes up or not.

How To Set Up To Trade The Trade Balance

For this report, since the market tends to move and then pull back, an Iron Condor strategy is recommended. Often times reports like these will make the market have a slight reaction, so with that comes some implied volatility in pricing for options. Nadex spreads are the instrument recommended for setting up this Iron Condor. Spreads have a floor and a ceiling where you can’t lose or profit past, depending on the direction of your spread. For example, if you went short a spread or sold a spread, and the market went up, you could not lose past the ceiling of your sold spread. Likewise, if you were long that spread and bought it instead you could not profit anymore beyond the ceiling of that spread.

To set up your Iron Condor, you will enter two Nadex USD/CHF spreads. Looking at the spread scanner, you want to find and buy a spread below market but with its ceiling where the market is trading at the time. You also want to sell a spread above the market and with its floor being where the market is at the time. In this way the ceiling of your bought spread and the floor of your sold spread will meet. Below is an image of the spread scanner.

You can see Nadex spreads for USD-CHF are up and the expiration or closing time. For this trade, you want to enter at 11:00 PM ET, Monday, September 21, 2015, with an expiration or closing of Tuesday, September 22, 2015 at 7:00 AM ET.

To view larger image, click HERE.

Your reward or profit potential for this trade should be around $30 or more, combined between the spreads. If you look to the outside of the spread scanner, you can see red and green bars. They show you what the risk/reward is for that spread if you sell it or buy it. A combined profit potential of $30 may seem low, however, for this trade the market can move as much as 60 pips up or down and the trade will still have a 1:1 risk reward ratio. Your trade is at breakeven if the market moves 30 pips up or down. Max profit is reached when the market remains right in the center of the spreads or if it reacts to the report and then pulls back to the center of the spreads. Based on previous reports that is how the market has reacted in the past.

To learn more about Nadex spreads, or to access the spread scanner visit www.apexinvesting.com.