Production And Trade Balance Reports For Great Britain Bring Evening Trade Opportunity

Thursday evening, you could place a trade using Nadex GBP/USD spreads and take advantage of the three reports being released in the wee U.S. hours of Friday morning at 4:30 a.m. ET. The reports include Manufacturing Production, Industrial Production, and the Trade Balance. All three report information that gives clues for the state of the Great Britain economy. When news like this is released, it’s difficult, if not impossible to know which way the market is going to move. Often times though, from tracking past reports it’s possible to know the average movements of a market and then plan a trade strategy for future reports and catch profit.

This is what Apex Investing has done for many news reports similar to this and has put together a weekly calendar with strategies for planning possible trades. For these scheduled reports that release Friday at 4:30 a.m. ET, the trade strategy is to enter at 11:00 p.m. ET Thursday, the night before. The strategy, an Iron Condor, is a neutral strategy best for catching profit when the market stays in a range or moves and then pulls back. That is what the GBP/USD market tends to do after the release of these reports.

When trading a spread you are trading a range of a market based on the floor or bottom and the ceiling or top of the spread. Having a floor and a ceiling allows the trader to know what their max risk and what their max possible profit is upfront, because you cannot win or lose past the floor or the ceiling of a spread based on your entry point and the direction you took the spread. To set up the Iron Condor strategy for this trade, you would need to buy a Nadex GBP/USD spread with the ceiling of the spread right where or very close to where the market is trading at the time. Then you could sell a Nadex GBP/USD spread with the floor matching the ceiling of your bought spread and also where the market is trading at the time.

The profit potential you want for this trade setup is $35 or more combined between the spreads. This means you want to find two spreads meeting the above parameters, which have a potential reward amount of around $15 - $19 or more per spread to give you a $35 or more combined profit potential. To easily find possible spreads, use the spread scanner specifically designed to effectively trade spreads. Below you can see what the spread scanner looks like showing Nadex GBP/USD spreads.

To view a larger image click HERE.

After the reports are released, the market tends to make a move and then pulls back. When this happens, one side of your Iron Condor can profit. It may be when it pulls back that the second side of your Iron Condor will profit. However, if the market has pulled back but not made profit, as long as it is close to the center between your spreads at expiration, this side could profit as well.

To access the spread scanner and to learn more about trading, go to www.apexinvesting.com.