Canada GDP Reports Set To Release Friday

By Darrell Martin

On Friday, March 2, at 8:30 AM, Statistics Canada will release four reports. The reports will range in importance from low to high and offer a way to monitor variances in Canada’s economy. They will address annualized GDP, quarter-to-quarter GDP implicit price, and GDP from month-to-month and quarter-to-quarter. As a result, a trade opportunity may arise as these changes occur.

Movements in the market are known to be volatile when news reports of this type are released. A usual reaction to these news reports is movement followed by a pullback. However, the direction these movements will occur is unknown.

As the market moves, the trader can be allowed an opportunity to collect premium regardless of the movement. One strategy the trader may use to achieve this is known as the Iron Condor. It uses two USD/CAD spreads with the ceiling of a purchased spread meeting the floor of a sold spread when entered where the market is trading at the time.

Premium Collection

Both trades can profit depending on their relation to the center while the market fluctuates once the pullback happens with the Iron Condor strategy. This results in collecting premium. Nothing further is risked beyond the floor and ceiling of spreads, maintaining risk to a realistic 1:1 potential.

Enter two contracts at the same time by buying one below and selling one above where the market is trading at present. Since a spread limits risk by having a floor and a ceiling, ensure the floor of the spread sold meets the ceiling of the spread bought. By doing this, the trade is able to profit in a larger range as the market moves.

For demonstrating the way markets react and further familiarizing with news reports and Nadex spread interactions, this is a great trade. The trader can use this strategy live once they have become familiar and understand such a demonstration.

Free education for day trading is offered at Apex Investing.