Trade Opportunity Coming Up On The USD/CAD

Manufacturing Sales and Foreign Securities Purchases numbers are coming out on Friday, October 16, at 8:30 a.m. ET. The USD/CAD is the market to trade for this scheduled news event. There is no knowing which way the market will go, so the recommended strategy is an Iron Condor using Nadex spreads.

The Manufacturing Sales report is the change in the total value of sales made by manufacturers and this is a leading indicator for economic health. The reason being that manufacturers are affected early by market condition changes. Their sales are a signal for future spending, hiring and investment. Foreign Securities Purchases report is the total value of domestic stocks, bonds, and money-market assets purchased by foreigners. These items must be purchased with domestic currency so if Foreign Securities Purchases is greater than forecast, it is good for currency.

The Iron Condor Strategy

Using Nadex USD/CAD spreads you can set up an Iron Condor strategy by buying a lower spread below the market but with the spread’s ceiling being where the market is trading at the time. Also, sell an upper spread but with the spread’s floor being where the market is trading at the time. It’s imperative to meet these floor/ceiling parameters as closely as possible for the best setup. You can enter as early as 8:00 a.m. ET for 10:00 a.m. ET expirations.

The other factor you must have when entering this trade is a combined profit potential of $25 split as evenly as possible between the spreads. To find your spreads at a glance at 8:00 a.m. ET, just open the spread scanner and look at the spreads expiring at 10:00 a.m. ET on Friday. Looking down the middle column, you will will see all the spreads offered for that expiration time. The floor number is on the left and the ceiling number is on the right. The price to sell the spread contract is just to the left and the price to buy the spread contract is to the right. Looking to the far left, you will see the Risk/Reward for the spread if you were to sell it and looking to the far right is the Risk/Reward if you were to buy it. Below you can see an example of the spread scanner displaying spread contracts for the USD/CAD.

To view a larger image, click HERE.

Looking at the reward numbers in the green bar, find the spreads with the combined reward or profit potential of $25 as evenly split as possible. Be sure the spreads have the correct or extremely close floor and ceiling parameters. Then, having met all those requirements, enter your trade. After entering, you can set your take profits and stop triggers. You may profit on one side before the other side. Or you may only profit on one side. Also, with this setup if the market makes no move or moves and then pulls back to center your trade can makes its highest profit potential.

For free access to the spread scanner and education on how to trade Nadex spreads and binaries as well as how to trade futures, forex and CFDs, just go to www.apexinvesting.com. Nadex can be traded from 49 countries and is a regulated, US based exchange.