By Darrell Martin
Three reports come out this week on Thursday, July 9th, 2015 at 7:00 AM ET. This will provide a trade opportunity with Nadex GBP/USD Spreads. You will want to enter your trade at 6:00 AM ET for 8:00 AM ET expirations.
The three reports to come out include the following:
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Official Bank Rate
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Asset Purchase Facility
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MPC Rate Statement
The Official Bank Rate is the interest rate the Bank of England (the releasing identity) will lend at overnight to financial institutions. The MPC Rate Statement is released when the Official Bank Rate is released and is a statement. It includes the voting outcome and details the economic outlook and clues for future votes. The Asset Purchase Facility tells of the total value of money the Bank of England will make and use to purchase assets in the open market which is a quantitative easing program, i.e. money printing program. The program was started due to the financial crisis in 2009.
The Iron Condor Strategy
The strategy for this trade is the Iron Condor using Nadex GBP/USD spreads. Buy the lower spread and sell the upper spread. The ceiling of the lower bought spread should be where the floor of the upper sold spread is and should be where the market is trading at that time. Keep your profit potential to $15 or more. To do this, buy the lower spread for around $15 or more and sell the upper spread for around $15 or more.
Great Strategy For When The Market Moves Then Pulls Back
It is expected that the market will make its move after the news is released and then pull back, which is what you want it to do. The closer the market pulls back to the center of the Iron Condor the greater your profit potential. It is $1 less of profit for every tick away from the center the market is at expiration. However, for this trade the market would have to move 60 pips in one direction and maintain there until expiration to be at a 1:1 max risk reward ratio. So this is considered a low risk trade. Apex Investing has recommended this trade strategy based on 12- 24 months of reports and market reaction. For an example of an Iron Condor trade, read The Awesomeness Of The Iron Condor. To see a full news calendar complete with trade strategies, go to www.apexinvesting.com. Nadex can be traded from 49 different countries.