Easy Strategy Setup To Trade The U.S. Prelim GDP

Tuesday get ready to trade the EUR/USD around 8:00 a.m. ET, as the Bureau of Economic Analysis will release the US Prelim GDP and Prelim GDP Price Index at 8:30 a.m. ET November 24, 2015. Using Nadex Spreads, you can enter as early as 8:00 a.m. ET for 10:00 a.m. ET expirations. The Prelim GDP stands for Preliminary Gross Domestic Product and is released after the Advance GDP but before the Final GDP. It’s a quarterly report and has just enough impact for a good trade, but not as much as the Advance report, which comes out first. The GDP is the broadest measure of economic activity based on the annualized change of value of all goods and services produced.

Nadex spreads offer several advantages; one being capped risk, which enables the trader to know what the max risk is up front. Spreads are a range of the market you can trade with a bottom or floor of the range and top or ceiling of the range. For this trade, it’s recommended to use an Iron Condor strategy, which uses two Nadex EUR/USD spreads. You buy a lower range spread with its ceiling where the market is trading at the time and you sell an upper range spread with its floor where the market is trading at the time. You want to have a profit potential of $30 or more for this setup.

To easily find those spreads for your trade setup, just open the spread scanner at www.apexinvesting.com. Below you can see an example listing of Nadex EUR/USD spreads.

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You can see from the image that the spreads are listed down the center with the floor on the left and the ceiling on the right. Don’t be intimidated by the many buttons on this scanner, which provides wide control for choosing and managing a trade. The scanner was designed to be intuitive and simple enough so any trader can start using it at first open and learn as you go.

The next number over to the left is the bid price to Sell the spread. To the right, is the offer price to Buy the spread. Then to the far left and far right are the Risk/Reward columns to Sell and Buy respectively. First, find the spreads with the ceiling and floor where the market is, as mentioned above, and then check out the Risk/Reward for each.

You can enter when the reward is around $13 - $15 or more on each of them for a combined Reward of $30 or more. To help filter out the spreads you don’t need to see, you can enter $13 in the Potential Reward area. Then you will see only the spreads with $13 Reward Potential. If when you first start to look, the spreads don’t seem to meet the criteria yet, just continue to watch them. As the market moves and time goes by, the spreads may come around to meet the criteria and then you can enter. Wait for the right setup though, never force a trade.

To learn more about Iron Condor strategies, how to trade news events or Nadex go to www.apexinvesting.com where you will find free education and more.