Market Overview

Australian News Releases For Evening Traders

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Some traders find themselves limited in trading time because of a day job or other pressing responsibilities. For those time-strapped traders in the U.S., it may be beneficial to consider trading news as it is released on the other side of the world. On October 18, at 8:30 PM EST, Australia will release four news reports dealing with Employment. They include, from least to most impactful:

  • Employment Change
  • Unemployment Rate
  • Participation Rate
  • Full Employment change

While these reports vary in importance, all of them can have an effect on the market that can then open opportunities for trading. Of course, the markets to look at would be anything that includes AUD, such as AUD/USD or AUD/JPY.

With any news release, the direction the market will move is ultimately unknown. Therefore, It is a good idea to choose a strategy that can profit no matter which way the market moves, like an Iron Condor strategy.

An Iron Condor is traded on spreads. One spread is bought below the market at the same time another spread is sold above the market. Although Iron Condors are suggested for range bound trades, they can prove profitable when news is released that can cause the market to move and then pullback.

By placing both parts of the trade, the area in which the market could move is, ideally, entirely contained. To achieve this, the ceiling of the lower spread must be equal to the floor of the upper spread. The equal ceiling and floor levels should be where the market is trading at the time of entry.

In analyzing the logistics of an Iron Condor trade, it could be said that the risk is high and the profit is low, in comparison. However, the trader is actually taking advantage of the premium by buying lower and selling higher than the market. Ideally, the market needs to move just enough for one side to profit, and then pull back so the other side can profit as well. On the buy side of the trade, as long as the market goes up or stays flat, profit will be made. The sold side can be viewed as a hedge for the long contract with the possibility of more profit should the market pullback and be at breakeven for both contracts.

When news is released, there is always the likelihood of the market making a move, pulling back or ranging. This makes the Iron Condor an ideal strategy for global market traders.

Visit Apex Investing Institute for free day trading education and other trading tips.

Posted-In: apexinvestingBinary Options Eurozone Futures Commodities Options Forex Markets

 

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