Trade The UK Trade Balance News
The Goods Trade Balance for the UK will be released Tuesday, May 10, 2016, early in the morning at 4:30 AM ET. This makes for a trade opportunity, and one you can enter Monday, the night before, at 11:00 PM ET. The Office for National Statistics releases the Goods Trade Balance for the UK monthly, approximately 40 days after the month end.
When the number released is positive, more goods were exported. Exports affect currency in that foreigners must have domestic currency to purchase goods. If there has been significant demand for exports, that demand will directly affect domestic currency, making this a somewhat significant news event and one to trade.
The average range for the move has been around 35 pips. An Iron Condor can be a good strategy for implementing when it is anticipated the market may move but has a tendency to return or pull back.
By trading GBP/USD Nadex spreads, traders have the possibility of entering the trade the night before at 11:00 PM ET for 7:00 AM ET expirations. Spreads allow for trading a market but in a range of the market. The benefit is capped risk. Profit is also capped, but for this setup, spreads are ideal and the range is all that is needed. The range is specified by the floor and ceiling. A spread can be bought or sold, but will not profit or lose past the floor or ceiling.
For this Iron Condor strategy, one could buy a spread below the market with the ceiling where the market is trading at the time, and sell a spread above the market with the floor where the market is trading at the time. With an average move of 35 pips, the profit potential should be around $35 or more combined between the spreads.
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