An Evening Trade Collecting Premium Just Before The Swiss PPI Release

Are you trying to learn to day trade but you don’t have time during the day? How about night trading? When news comes out in the middle of the night, you can spread trade the volatility in the markets, using Nadex spreads. Nadex is a US based exchange and is regulated by the US Commodity Futures Trading Commission. With Nadex, you can start with as little as $100 to open a live account and you can demo trade anytime. In addition, the smallest incremental tick or pip on every market is $1, making it possible to start with smaller account sizes but also have the flexibility to trade multiple contracts.

Tuesday, January 19, 2016, at 3:15 AM ET, the Federal Statistical Office for Switzerland will release their Producer Price Index, which measures the change in the price of goods and raw materials purchased by manufacturers. This is a leading indicator for inflation, which would affect consumer spending. It’s released at 3:15 AM ET in the middle of the night; however, trading Nadex spreads, using an Iron Condor strategy, you can enter as early as 11:00 PM ET, Monday, the night before. Spreads have expirations so you would go for 7:00 AM ET expirations.

Based on market analysis done over the past 12 - 24 months, it was found after these reports are released that the market tends to move and then pulls back or will just stay in a range. An Iron Condor strategy works well with this kind of market movement. If you are able to buy a spread below the market and sell a spread above the market and the market stays in a range or moves and then pulls back, you can collect the premium in the pricing as time expires.

To set up the trade, buy a lower Nadex USD/CHF spread below the market but with its ceiling where the market is trading at the time. Also, sell an upper Nadex USD/CHF spread above the market but with its floor where the market is trading at the time. You want to be sure your spreads have a profit potential of $35 or more combined between them or approximately $17 each. You can use the spread scanner to easily find the spreads you need for your trade. To access it, just go to www.apexinvesting.com. Below is an image of the spread scanner showing example Nadex USD/CHF spreads.

To view larger image click HERE.

Since you will have bought one spread approximately $17 below where the market is and one approximately $17 above where the market is, the market need not move at all. The spreads only need to expire for you to profit. On the other hand, the market can move one direction enough for one side to profit and then when it pulls back, the other side may profit as well. Basically, the market can move 35 pips up or down and your trade would still be break even. The market could move 70 pips up or down for your 1:1 max risk reward ratio and where you should exit for risk management.

To learn more about how to trade the news or Nadex binaries and spreads as well as futures, forex, and CFDs visit www.apexinvesting.com.