Import, Export: It Can All Lead To A Day Trade Opportunity

The Trade Balance of any country is important.

It’s the difference between the imported and exported goods and the actual number is usually announced monthly, which is the case for Switzerland as well. Their Federal Statistical Office will announce their Trade Balance at 2:00 AM ET, Thursday, April 22, 2015. 

Traders watch the trade balance as it can impact currency demand, production demand and domestic manufacturing prices. Currency demand is affected because foreigners must buy the domestic currency to pay for the nation’s exports.

All of this can be good for currency if the actual is greater than the forecast.

Market Can Go Either Direction. Iron Condor Is Set Up To Potentially Profit

To trade this news event, an Iron Condor is possible, because the market can go in either direction and the strategy could profit.

This strategy calls for at least two Nadex spreads: A purchase of the lower USD/CHF spread, and a sale of the upper USD/CHF spread. 

Market Can Move 60 Pips For A 1:1 Max Risk Reward Ratio

For this Iron Condor, a profit potential of $30 or more is possible; the market can move 60 pips in one direction for a 1:1 max risk reward ratio.

However, it’s anticipated, based on past market response to this news report, that the market will move and then pull back.

The closer the market pulls back to center between the spreads, the higher the profit, with max profit being at center.