Evening News Trade Opportunity With Release of Aussie Employment News

Somewhere in the world is always awake creating and releasing news, which can cause volatility in the markets. During the US evening hours and while the US is asleep, Australia is awake. The Australian Employment Change and Unemployment Rate numbers are scheduled for release Wednesday, May 18, 2016, at 9:30 ET PM. This is a trading opportunity for right after work at 6:00 PM ET, entering an Iron Condor using Nadex AUD/USD spreads with 11:00 PM ET expirations.

The strategy is setup to capture profit after the market has reacted to the news event, made its move and is pulling back. Buy a spread below the market with the ceiling where the market is trading at the time, and sell a spread above the market with the floor being where the market is trading at the time. The profit potential is $35 or more combined between the spreads.

Traders have found using the spread scanner makes it easy to find the right spreads. Look for the right amount of reward potential. Those spreads usually have the right ceiling and floor parameters. Below is an image.

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The wide range the market can move before the trade incurs a loss makes the Iron Condor strategy ideal. The breakeven points are where the market moves up 35 pips or down 35 pips. If the spreads expire with the market anywhere in between that 70-pip range, the trade will profit. If the market moves and pulls back to directly between the two spreads, and is there at expiration, then it makes max profit.

Risk can be contained using stop limit orders from the spread scanner. To keep risk to a maximum of $35, stops should be placed 70 pips above and below the entry point. This will keep risk to a manageable 1:1 risk/reward ratio. It leaves a range of 140 pips for the market to move around.

The advantage to spreads is the defined capped risk, unlike trading spot forex with unlimited risk. The stop limit orders add another level of risk management.

Free education and the spread scanner are available at www.apexinvesting.com.