Wide Range Trade Tip For Various US Economic News Reports

Various reports come out regarding the economy on Friday including the Employment Cost Index, Core Personal Consumption Expenditures Price Index and Personal Spending and Personal Income. The reports are released at 8:30 AM ET making for a trade opportunity entering Nadex spreads at 7:00 AM ET with 9:00 AM ET expirations.

The Employment Cost Index reflects the change in the price of labor that businesses and government pay. The Core Personal Consumption Expenditures Price Index is the change in the price of goods and services, excluding food and energy, that consumers purchase. Finally, the Personal Spending and Personal Income reports tell the change in value of expenditures by consumers and change in value in income by consumers respectively.

Based on previous market movement after these reports, it was found that an Iron Condor setup using Nadex EUR/USD Spreads works well. To set up an Iron Condor, buy a lower range spread below the EUR/USD market. A spread has a floor and a ceiling, the floor being the bottom of the range and the ceiling being the top of the range. Be sure that your bought spread has a ceiling where the market is trading at the time. Also, sell an upper range spread above the EUR/USD market and have the floor of the sold spread be where the market is trading at the time.

To find these spreads easily, you can open the spread scanner. You want a profit potential of $25 or more combined between the two spreads. You’ll see on the spread scanner that the spread contracts run down the middle with their floor being on the left and the ceiling being on the right. Once you have found the right floor and ceiling, look to the far left and far right and you will see if together the spreads have a combined $25 or more profit potential. Here is an example of Nadex EUR/USD spreads showing in the spread scanner.

To view a larger image, click HERE.

Once you have entered your trades and your Iron Condor is set up, you want to put on your stops. Depending on where your exact entries are, the 1:1 risk reward ratio will be when the market goes approximately 50 pips up or down. The breakeven point is when the market is up approximately 25 pips, depending again on your entries. You can make max profit if the trade expires and the market has ranged staying flat or moved and pulled back to around center between your spreads. Or, you may profit on one side of your trade and then take profit on the other side of your trade.

For a complete schedule of news events to trade, with strategies and access to the free spread scanner, go to www.apexinvesting.com.