Evening Australian News Makes For A Potential Nadex Spread Trade

The Reserve Bank of Australia will release its Cash Rate news on Monday, February 6, at 10:30 PM ET. With that comes the Rate Statement, which show the change in overnight loans between banks. This report can make for a good evening trade, provided the right trade vehicle and strategy is employed.

Trading two Nadex AUD/USD spreads using an Iron Condor strategy can be a high probability trade, based on previous market action on past news releases. Each spread could have a profit potential of $15 or more per spread for at least a $30 combined profit potential. The trade can be entered as early as 10:00 PM ET for a 12:00 AM ET expiration.

If one has never traded spreads before, this trade is still quite easy to practice using a Nadex demo account, which includes access to the Apex spread scanner for trading Nadex spreads. Filters in the browser-based scanner bring up the desired market and expiration times and list the profit potential for each spread, highlighting purchase and sale price with green and red bars.

The Iron Condor strategy requires buying one spread whose ceiling is where the market is trading at the time and selling another spread whose floor is where the market is trading at the time. Searching the spread scanner for the right profit potential first can help to uncover spreads that meet the floor and ceiling parameters. For a glimpse of the spread scanner, see below.

The Iron Condor is a strategy meant for profiting when a market pulls back from a move. Alternatively, the market can stay relatively still while also profiting. Stops can be set for the trade in the event the market makes a move outside the 1:1 risk reward ratio area. For this trade, based on a $30 profit potential, stops could be placed 60 pips above and below from where the market was at entry. When the market is anywhere between the breakeven points of 30 above and below where it began, then the trade profits. Max profit happens when the market is right between the two spreads at settlement.

Free access to the spread scanner is available at www.apexinvesting.com, along with free day trading education.