By Darrell Martin
France and Germany release their Gross Domestic Product (GDP) numbers earlier than Eurostat and so this report tends to have a moderate impact. However, it still has an impact on the markets, enough for a Iron Condor neutral strategy.
The Flash GDP is the change in the inflation-adjusted value of goods and services produced by the economy. Eurostat releases two versions of the GDP: the Flash and then 20 days later, the Revised. Since the Flash comes first it has more impact than the Revised. The GDP is the broadest measure of economic activity and the primary measure of economic health.
Immediately after the Flash GDP, Eurostat releases the Trade Balance numbers which is the difference in value between imported and exported goods and services during the month. This is a monthly report whereas the Flash GDP is quarterly. A positive Trade Balance means more goods and services were exported than imported.
To set up for this trade you would enter your Nadex Spreads trading the EUR/USD contracts for an Iron Condor as early as 11:00 PM the night before the reports come out. For this trade you want to have a minimum profit potential of $35. You would buy the lower spread and sell the upper spread. The ceiling of your bought lower spread should be the same market price as the floor of your upper sold spread, and the price should be right around where the current underlying market price is at time of entry. The reports are released at 5:00 AM EST Friday, February 13, 2015. Therefore, look for spreads with a 7:00 AM EST expiration.
Just after the announcements the market will move. The closer the market returns to the ceiling of your bought spread and the floor of your sold spread the higher your profit. Apex Investing analyzes the market movement in last 24 months after specific news events to come up with the recommended trade strategies and minimum profit potentials.
A complete monthly news plan is available at Apex, to trade a variety of markets based on numerous news events. If you would like to learn more on how to trade Iron Condors or trade other news events, go to www.apexinvesting.com. Apex Investing Institute offers free education and free access to the Nadex Binary and Spread Scanner Analyzers. Member traders are invited to trade in the rooms, take advantage of trade signal services, have key indicators and access the Apex Forum. The forum content is updated daily and includes over 10,000 members. In a supportive learning community of seasoned as well as up and coming traders, traders of all levels learn how to trade Nadex binaries and spreads in depth, as well as futures, forex, stock and options, and gain an edge for successful trading overall.