By Darrell Martin
Wednesday, April 13, 2016, at 10:00 AM ET, the Bank of Canada will release the Monetary Policy Report, Rate Statement and Overnight Rate, the rate at which financial institutions lend money between themselves. These reports tend to get the USD/CAD market moving and to take advantage of the movement, a Straddle strategy is recommended by the Apex News Team.
Low Defined Max Risk, No Stops Necessary
Straddle strategies are great for capturing profit when a market may tend to take off with a big move. For this setup, buy a Nadex USD/CAD spread with the floor being where the market is trading at the time of entry. Also, sell a Nadex USD/CAD spread with the ceiling being where the market is trading at the time of entry. The max risk for each of the spreads should be no more than $20 for a combined max risk of approximately $40. Nadex spreads are designed for the day trader and provide defined capped risk upfront. You can exit your trades at any time unlike other companies offering spreads.
The reports are released at 10:00 AM ET so you can enter as early as 9:00 AM ET for 11:00 AM ET expirations. The great advantage of having a low max risk is not needing to have stops. What you do need to enter are limit take profit orders, where the market would hit the 1:1 risk reward points. If your max risk is $40 combined, then you will want to place your take profit orders where the market hits 80 pips up or down. Once the market hits 40 pips up or down, it has hit the breakeven points.
To easily, at a glance, find the spreads you need with the right floor, ceiling and risk parameters, just use the spread scanner available free to all traders at www.apexinvesting.com. There choose your market. The spreads, with their floor and ceiling, will list down the center of the window. The max risk will be listed to the left for selling the spread, and to the right for buying the spread. Choose your spreads, click the ticket icons and verify your order information, then click submit. It’s that easy. With a demo account at Nadex, you can demo the trade and test the spread scanner to see how easy it is.
For a complete news calendar of events and strategies to trade them, go to www.apexinvesting.com. There you will find free education, and leading indicators for trading Nadex binaries and spreads as well as futures, forex and CFDs. Nadex is a CFTC regulated US based exchange and can be traded from 48 different countries.
