Put This Trade On The Night Before For A Great Britain Early AM Retail Sales Release

It’s so convenient to put on a trade the night before for a scheduled news event that takes place in the early morning hours at 4:30 AM ET, on Wednesday, June 17, 2015 . This kind of trade can be done using Nadex Spreads and a low-risk Iron Condor strategy. The Office for National Statistics in Great Britain is releasing the retail sales numbers which gives a percentage of change in the total value of inflation-adjusted sales at the retail level. This is an important indicator of consumer spending which is the vast majority of economic activity.

To set up the trade, enter on Tuesday, June 16 at 11:00 PM ET for 7:00 AM ET expirations. You want to buy a lower GBP/USD Nadex Spread and sell an upper GBP/USD Nadex Spread. The ceiling of the lower bought spread should be where the then current underlying market is trading, and the floor of the upper sold spread should also be where the then current underlying market is trading. The profit potential should be $35 or more. If it’s not possible to get the floor and ceiling together and where the underlying market is, or you can’t get near the profit potential, then don’t take the trade. Sometimes it’s not possible, however, the best opportunity for the right spreads is usually right at 11:00 PM ET which is the earliest you can enter for the 7:00 AM ET expirations.

An Iron Condor strategy is considered a neutral strategy and is recommended for times when the market has the tendency to make a move and then pull back to where it started or close to that point. In this trade recommendation that is exactly what is expected to happen. Obviously, there is no guarantee in trading, but based on market analysis at Apex Investing, it was found that the GBP/USD made consistent market reactions after this news release in the past, and that lended to an Iron Condor recommendation.

The Iron Condor is a low risk strategy because the market can move up to double the recommended profit potential and still have a 1:1 risk reward ratio. So for this trade recommendation, the GBP/USD could move up to 70 pips in either direction, maintain at that price until expiration and the max loss would be $35. A 70 pip move is a great distance for a market to move. Based on market analysis, it was found that the greater number of scheduled news releases move the market, but not by a great deal. Then the market tends to pull back, making the Iron Condor an ideal strategy for profiting yet still maintaining low risk. Max profit is when the market pulls back to center between the spreads and is there at expiration. For every pip away from the center the market is at expiration, it is $1 off of max profit.

For a more in-depth view of an Iron Condor and how to set it up read the article The Awesomeness Of An Iron Condor by Darrell Martin. To see a full listing of news events and strategies to trade them go to www.apexinvesting.com . Nadex can be traded from over 49 different countries offering spread and binary derivatives of numerous markets.