Evening Trading The AUD/USD During News

Evening can be a great time to trade forex using Nadex Spreads especially when there is news being released. Wednesday at 7:30 p.m. ET, the Australian Employment Change and Unemployment Rate will come out. This presents a trade opportunity around 6:00 p.m. ET for entering an Iron Condor trade using Nadex Spreads with an expiration of 11:00 p.m. ET.

The Employment Change reports on the change in the number of employed people during the previous month while the Unemployment Rate gives the percentage of unemployed seeking work. It is unknown which way the AUD/USD market will go, however based on market reaction over the past 12 - 24 months, it’s been found to react and then pull back. This kind of move is perfect for an Iron Condor strategy, which is a neutral strategy that can capture profit in range bound markets, stagnant markets, and markets that move then pull back whichever direction they go.

To set up your Iron Condor, you buy a lower range spread with the ceiling or top of your spread being where the market is trading and sell an upper range spread with the bottom or floor of your spread being where the market is trading. For this trade it is recommended to set up for a profit potential of $35 or more combined between the spreads. To do this and to find just the right spreads with the right ceiling and floors, go to the spread scanner available on www.apexinvesting.com. Below you can see an image of the spread scanner with Nadex AUD/USD spreads being displayed.

To view a larger image click HERE.

Looking at the scanner, you can see the spreads are listed down the middle with the floor price on the left and the ceiling price on the right. To the far left is the risk/reward for the spreads if you sell and to the far right is the risk/reward for the spreads if you buy. Once your desired spreads have a $35 combined reward, or approximately $15 - $18 or more reward per spread that is when you can enter the trade.

With an Iron Condor, you will want to know your breakeven point and your 1:1 risk reward ratio point. That is where you will put stop limit orders. For this trade the market has to move 70 pips up or down to hit the 1:1 risk reward ratio point. Once the market moves 35 pips in either direction, then your trade is at breakeven. Anything less than that and you will have some profit. What can happen is the market makes a move in a direction and one side of your Iron Condor profits. Then the market can pull back and the other side may profit as well.

To learn more on how to trade Nadex spreads and binaries, or forex, futures and CFDs go to www.apexinvesting.com. Nadex can be traded from 49 different countries and is a US located CFTC regulated exchange.