Market Overview

GBP Trade Balance News Offers Overnight Trading Opportunity


Because news is scheduled and being released around the world all the time, the markets can experience volatility. This, in turn, creates trading opportunities. On Friday, February 9, at 4:30 AM EST, the United Kingdom will release GBP Manufacturing and Goods Trade Balance news. Offering an overnight trading opportunity for traders in the United States, enter as early as 11:00 PM EST, the night before.

This is when the 7:00AM EST expiration spreads are released. Entering the night before as well as placing stops allows traders to rest easy. Simply place the trade and check it upon arising in the morning.

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, favors a high probability trade. Most likely, there will be movement, but the direction is unknown. A strategy to use in this situation is the Iron Condor, which uses two Nadex GBP/USD spreads.

One spread is bought below the market with the ceiling where the market is trading at the time of entry, and one spread is sold above the market price and with its floor where the market is trading at the time. There can be more spreads traded and the spreads can have more profit potential.

Be sure to keep the Iron Condor balanced by using the same number of spreads sold as those bought. Once the news is released, the market has tended to react, make a move and then pull back.

For this setup, with a contract bought below the market and another sold above the market, a market move and a pullback close to or right where it started from will bring high or max profit. The trade can be left on until settlement to let it play out, or if it has reached high profit, can be exited early.

A complete calendar of scheduled news events along with news strategies is available at Free day trading education is available there for all traders.

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Binary Options


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