Evening Trade Opportunity With Early Morning UK News
Economic news is scheduled for release 24/7 around the world. With these news releases comes market volatility. With that can come trading opportunities. Early Tuesday morning various reports for Great Britain will be released including the Consumer, Producer, and Retail Price Indexes as well as Public Sector Net Borrowing.
In anticipation of this news, there can be implied volatility present in the pricing of spreads. Using Nadex GBP/USD spreads, with the right strategy for this news can favor a high probability trade.
The news is set for release on Tuesday, March 21, at 5:30 AM ET. An Iron Condor strategy trading two spreads in anticipation of the release can be placed as early as 11:00 PM ET the evening before when the spreads are released for 7:00 AM ET expiration.
To set up this strategy, one spread is purchased below the market with the ceiling where the market is trading at the time of entry. Another spread is sold above the market price with its floor where the market is trading at the time. Each spread should have a profit potential of $17 or more, making for a combined profit potential of $35 for the trade.
More spreads can be traded traded with additional profit potential. It is important for the Iron Condor strategy that the trades are balanced and have the same number of spreads sold as bought.
Once the news is released, the market tends to react, make a move, and then pull back. For this setup, where one contract is bought below the market and another is sold above the market, a market move and a pullback close to or right at where it started makes for high or maximum profit. The trade can be left on until settlement or, if it’s reached high profit, can be exited early.
Stops can be placed where the market would hit a 1:1 risk-reward ratio point. For this trade, that would be where the market hits 70 pips above and below from where it was at entry. Spreads are quick and easy to find, even for first time traders, using the spread scanner on the Apex website. The scanner was designed by traders to meet their trading needs, including instruction on how to trade spreads quickly, information on the right spreads for a strategy at a glance, and access to all necessary information for advanced traders in multiple markets on one screen with immediate accurate entries.
A complete calendar of scheduled news events along with news strategies is available at www.apexinvesting.com. Free day trading education is available there for all traders.
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