An Easy Evening Aussie News Trade

Traders just starting out can sometimes find it hard to find the right time to trade, especially when they are working daytime work hours. Scheduled news events can provide volatility in the currency markets after hours, providing nighttime opportunities for trading. Australia’s Employment Change, Unemployment Rate and New Motor Vehicle Sales will be released Wednesday at 9:30 a.m. ET. Using Nadex AUD/USD spreads, an Iron Condor strategy can be used to trade this scheduled evening news event.

One could enter at 6:00 p.m. ET for the 11:00 p.m. expirations and buy a spread with the ceiling where the market is trading. They could also sell a spread with the floor where the market is trading. Be sure to buy below the market and with a profit potential of around $17 or more. The sold spread should be sold above the market and for a $17 profit potential or more.

The object is for the combined profit potential to be around $35 or more. When accomplished, the breakeven points for the trade are 35 pips above and below. This strategy is set up for the market to either range, stay where it is, or make a move and pull back. As time expires, the trade will profit should the market settle somewhere within the breakeven points.

Stops should be placed in the event the market decides to take off in a direction and keep going. With an approximate $35 or more profit potential, stops should be placed where the market would be at 70 pips up or down. At those points, the risk would be approximately $35 for a 1:1 risk/reward ratio.