By Darrell Martin
Two reports come out Wednesday, April 22, 2015, at 4:30 AM ET which can move the GBP/USD market, making for a trade opportunity. This trade can be set up the night before at 11:00 PM ET using Nadex spreads and/or binaries. The Bank of England, (BOE), is reporting its voting outcome on two reports:
- MPC Official Bank Rate Votes
- MPC Asset Purchase Facility Votes
The reports are are released in an “x-x-x” format. The first number is how many Monetary Policy committee members voted to increase rates. The second shows the number to decrease rates and the third is how many voted to keep rates the same. The numbers show insight to the numbers of members change in stance on rates. These numbers are released 13 days after both the Asset Purchase Facility and the Official Bank Rate reports are announced.
Straddle Setup
For a straddle setup, investors can enter as early as 11:00 PM ET Tuesday, the night before, for a 7:00 AM ET expiration. Buy the upper GBP/USD Nadex spread and sell the lower GBP/USD Nadex spread with a maximum risk of $40. When buying the upper spread, look to find one with the floor where the then current underlying GBP/USD is trading. Also, when selling the lower spread look to find one with the ceiling where the then current underlying GBP/USD is trading.
Strangle Setup On the strangle setup, traders can enter as early as 11:00 PM ET Tuesday as well. Buy an out of the money binary for around $20 and sell an out of the money binary for around $80. Then your risk will be around $40 which is what is recommended. If you want to learn more about how to trade Nadex or how to trade news trades, visit www.apexinvesting.com. Nadex can be traded from 49 countries.