Canadian Manufacturing Sales Ripe For An Iron Condor Trade
Canada releases the Manufacturing Sales around 45 days after an end of a month, which shows the change in manufacturing sales each month. This is important to traders due to its reflection of possible future market conditions. A change in sales can indicate changes in their spending, hiring, and investment. This Manufacturing Sales news will be released 8:30 AM ET on Tuesday. This event can be traded with low risk using Nadex spreads and an Iron Condor strategy.
For this Iron Condor strategy, two Nadex USD/CAD spreads are traded. 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. Enter the spreads at 8:00 AM ET for 10:00 AM ET expiration.
Easy To Find These Spreads
To find the spreads quickly, use the spread scanner and find the spreads with the right profit potential for this trade, which is $25 or more combined between the spreads. Therefore, each spread should have a profit potential of around $13 or more.
At first, it may seem like the risk greatly outweighs the possible profit. By placing stop limit orders at the 1:1 risk/reward ratio points, risk is now managed and more realistic: $25 risk for $25 reward. Place stops approximately 50 pips up or 50 pips down from where the market was when the trade was entered.
Free education and the spread scanner are available at www.apexinvesting.com. Nadex is a CFTC regulated US based exchange.
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