By Darrell Martin
Consumer spending accounts for the majority of economic activity and what can affect spending more than employment. The Employment Change and Unemployment Rate will be released for Australia on Wednesday, April 13, 2016, at 9:30 PM ET. News from Australia can be a good opportunity to trade in the evening US time because of the time difference. Using an Iron Condor strategy and trading Nadex spreads, you can enter a trade at 6:00 PM ET for 11:00 PM ET expirations.
This news tends to move the market and then it will pull back. An Iron Condor uses two spreads to collect or capture profit on this kind of market movement. Buy one spread below the market but with the ceiling where the market is trading at the time and sell a spread above the market but with the floor meeting the ceiling of the other spread. The spreads should have a profit potential of approximately $17 or more each for a combined profit potential of $35.
A Spread Is An Option
With Nadex spreads, the floor and ceiling designate the range of the market you are trading. You can trade them long or short, but can’t profit or lose past the floor or ceiling. The risk is defined and known upfront and you can exit your trade at any time there is a trader with bid/offer on the other side. For this setup, trade Nadex AUD/USD spreads. To find just the right spreads with the right parameters, use the spread scanner available free to all traders at www.apexinvesting.com.
Once open, choose your market: AUD/USD. The floor and ceiling of each spread is listed down the center of the window, with the risk/reward potential for selling on the left and for buying on the right. Just click on the ticket icon of the spreads you want to trade, verify the order information and then click submit. Your order is entered immediately. For a peak at the scanner, see the example below.
Be sure to also set limit take profit orders, in case the market makes a move, one side can profit. Leave the other side on and should the market pull back the other side may profit as well. This strategy is buying below the market and selling above the market, at the same time. Max profit happens when the market is between the two spreads at expiration, then both sides have collected max premium. The breakeven points for the trade is where the market hits 35 pips up or down. The time to exit the trade to keep risk manageable is at the 1:1 risk/reward ratio points where the market moves up or down 70 pips.
For free education and leading indicators to trade Nadex binaries and spreads, as well as futures, forex and CFDs, go to www.apexinvesting.com. Nadex is a CFTC regulated exchange located in the US and can be traded from 48 different countries.
