Trade AUD/USD On New Home Loans News

Change in the number of new loans for homes went up for Australia by 2.6 percent with the last report out February 11, 2016, but was lower than what was forecast at 2.9 percent. The latest report, due out Tuesday, March 8, 2016, is forecast to be -2.7percent. Based on previous reports and market analysis from 12 - 24 months, this scheduled news event makes for a good trade opportunity.

Using Nadex spreads, you can buy below the market and sell above the market with an Iron Condor strategy. Spreads have a floor and a ceiling, which allow you to trade a range of a market. You can trade them long or short and cannot win or lose past the floor or ceiling. This also means you have defined capped risk. The report comes out at 7:30 PM ET. Therefore, you can enter your trade at 7:00 AM ET for 9:00 PM ET expirations.

Buy a lower range Nadex AUD/USD spread with the floor below the market and the ceiling where the market is trading at the time. At the same time, sell an upper range Nadex AUD/USD spread with the ceiling above the market and the floor where the market is trading at the time. Each spread should have a profit potential of $15 or more for a combined profit potential of $30 or more.

Be sure to set limit take profit orders after you have entered your trade. Once the news is announced, the market tends to make a move and then pull back. One side can profit and as the market pulls back, the other side can profit. Since with this setup you are buying below the market and selling above the market, the market can move up or down 30 pips and your trade will be at breakeven. For your stops, you want to place them at the 1:1 risk/reward ratio points where the market would move up or down 60 pips. Max profit happens when one side profits and then the other, or when the market comes right back to center between your spreads and is there at expiration.

You can easily find your spreads on the spread scanner available for all traders at www.apexinvesting.com. Below you can see the spared scanner displaying AUD/USD spreads.

To view larger image click HERE.

Down the center, you see the spreads with their floor and ceiling. To the outside left and right are the risk/reward potentials. That is where you look to find the spreads with the right floor and ceiling and risk potential.

To learn more about how to trade Nadex spreads and binaries as well as futures, forex and CFDs visit www.apexinvesting.com. Nadex is a US based CFTC exchange and can be traded from 48 different countries.