By Darrell Martin
Some of the forex markets can be great for trading at night. Case in point, the AUD/USD when the scheduled news of the Australian Building Approval Numbers come out. The Australian Bureau of Statistics will release the percentage change in the number of new building approvals issued at 9:30 PM ET, Tuesday, June 30, 2015. The first step to building is getting a government approved building permit and then much spending is involved to plan, build and sell which creates jobs. Therefore, this report can create a move in the AUD/USD market; however, after the move, it has been known to pull back making it the right kind of movement for an Iron Condor strategy.
Quick Night Time Trade Before Bedtime
Using Nadex AUD/USD Spreads, derivatives of the underlying market, you can set up an Iron Condor. Sell an upper spread and buy a lower spread. You can enter the trade as early as 8:00 PM ET for 10:00 PM ET expirations. The floor of the upper sold spread and the ceiling of the bought lower spread, should meet and be where the then current underlying AUD/USD market is trading. This strategy works well when it is unknown which direction the market will move and then pulls back after a move. The profit potential you want to go for is $30 or more, therefore buy the lower spread for around $15 and sell the upper spread for around $15, so the total profit potential is around $30 or more.
Low Risk Neutral Iron Condor Strategy, Market Can Move Either Direction
The Iron Condor is also a low risk setup. For this trade the market could move 60 pips in either direction and still the trade would maintain a 1:1 risk reward ratio. If the market moved 15 pips in either direction the trade would profit $15 on one side, and break even on the other side, for a total profit of $15. If the market moved 30 pips in one direction and didn’t pull back as it has after previous reports, then you would win $15 on one side and lose $15 on one side, therefore breaking even on the trade. The best case scenario is for the market to make its move and then pull back, and the closer it pulls back to center between the two spreads, the greater your profit.
This is a low risk easy trade for the evening time if you have to work all day and can’t trade. To find out more about how to trade Nadex using Iron Condor strategies see The Awesomeness Of An Iron Condor. by Darrell Martin. Nadex can be traded in different time zones as well, from 49 different countries. Also for other news trades and strategies to trade them go to www.apexinvesting.com.