How To Put On A Trade Just Before New Home Sales Report Is Released

There are few things as stimulating for an economy as New Home sales.

Everyone involved gets excited. People in the mortgage business get to sell loans and execute transactions. New homeowners run out to buy new furniture and appliances. And contractors are often get hired for extra work like front yard landscaping.

Just how stimulating the New Home Sales was last month for the US economy will be revealed at 10:00 AM ET, Thursday, September 24, 2015.

Right before this revelation comes to light is a great time to put on a trade using Nadex EUR/USD spreads. The strategy to set up is the Iron Condor strategy.

This is the strategy to use when you know the market may move, so there will be some implied volatility in the pricing of the spreads, but won’t move by much and most likely the market will even pull back.

You want the market to pull back, right to the center of your Iron Condor where you can make full profit.

Need To Find The Right Spreads? No Worries. Look On The Spread Scanner

It’s imperative you have the right spreads with the right amount of profit potential. If you aren’t able to get the right combination, then don’t take the trade; move on to your next trade.

For this trade, you need to have a Nadex demo or live account. Demo the trade if you are just learning to trade Nadex spreads. You can use the spread scanner to find your two spreads.

Enter at 9:00 AM ET for 11:00 AM ET closing or expirations. You can see an example of the EUR/USD listed on the spread scanner.

Buy a Nadex EUR/USD spread below the market with the ceiling being where the market is at the time. Sell a Nadex EUR/USD spread above the market with the floor being where the market is trading at the time.

The spread contracts are listed in the middle column, and the risk reward amounts are listed on the left, if you are selling the spread, and on the right, if you are buying the spread.

The profit or reward potential you want is $30 or more combined, so around $15 or more per spread.

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The benefit of the Iron Condor is that the market can move a great deal before your trade is break even or even at a 1:1 risk reward ratio.

Remember this scheduled news will affect the market, but then the market tends to pull back which is exactly what you’re looking for. As it pulls back, the closer it comes back to the center between your two spreads, the greater your profit.

With this setup, the market can go up or down 60 pips for a 1:1 risk reward ratio. Your trade is break even if the market goes 30 pips up or down and doesn’t pull back. The Iron Condor strategy gives the market plenty of room to move before your trade can lose anything.

Also, unlike binary trades, spreads are not all or nothing at expiration. The center, directly between your spreads, is max profit and it is only less $1 profit for every pip away from that center. This is a great neutral strategy for when a market is expected to move and then return.
To learn more about how to trade Iron Condors, Nadex binaries and spreads, and for access to the binary and spread scanners visit www.apexinvesting.com, where real traders help real traders.