Two Reports Released Friday Presents An Opportunity To Trade USD/CAD

Canada releases their Gross Domestic Product numbers monthly about 60 days after the month being reported ends, which is unique. Most countries release quarterly. The GDP is the broadest measure to gauge an economy’s health. Both reports will be released Friday, October 30, 2015 at 8:30 AM ET.

With the release of this data, you can trade the USD/CAD using Nadex spreads with an Iron Condor strategy. An Iron Condor strategy uses two spreads to capture profit should the market go up, down or stay in a range. You can enter as early as 8:00 AM ET for 10:00 AM ET expirations. For this trade, you want a profit potential of $25 or more combined. You can trade more contracts to increase profit; however, you need to have the same number of spread contracts on each side of your trade.

Iron Condor Strategy Has Two Sides Or Ranges

The Iron Condor strategy has two sides or an upper and a lower range. You want to buy the lower range Nadex USD/CAD spread with the ceiling or top of the spread where the market is trading at the time. You want to sell the upper range Nadex USD/CAD spread with the bottom or floor where the market is trading at the time. Just before you need to enter, open the spread scanner to find your spreads. Look down the center where you will see the floors of the spreads on the left and the ceiling of the spread contracts on the right. Then, at the far left and far right you will find the risk/reward bars and amounts. There you want your spreads to have a minimum of around $12 - $13 profit potential so combined your trade will have $25 or more profit potential. Below is an example of the USD/CAD open on the spread scanner.

To view image click HERE.
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Once the news is reported that is when the market may react. As the market moves and then pulls back, one side of your trade may profit first and then the other side. The 1:1 risk/reward ratio point is where the market has moved up or down approximately 50 pips depending on your exact entries. Your break even point for this trade is when the market has moved approximately 25 pips up or down depending on your exact entries.

If the market stays flat and doesn’t move much at all, you can still profit. As time expires, you will profit from the time value. If the trade expires and the market is right in the middle between your spreads, you can make max profit as well. With spreads, every pip is worth $1. If max profit is right between the two spreads, then profit will be less $1 for every pip away the market is from center at expiration.

To access the spread scanner for free, go to www.apexinvesting.com a service by Darrell Martin. There you will find free education resources for trading Nadex binaries, spreads and futures, forex and CFDs.