Trade The UK Current Account News With The Wingspan Of An Iron Condor

News is happening and being released all the time around the globe and the markets react to it. This volatility can be implied in option prices and makes a great time to trade certain strategies. Coming out on Wednesday at 4:30 a.m. ET, various news reports will be released for the UK, namely though the Current Account report. This is similar to the Trade Balance report, but what traders watch for is the domestic currency information, a rising surplus means foreigners are buying more currency to execute transactions.

The beauty of the recommended trade strategy for this event is that it allows you to trade a middle of the night news event by entering the night before using Nadex spreads. No one wants to trade in the middle of the night. You enter at 11:00 p.m. ET the night before for a 7:00 a.m. ET expiration. The market tends to move and then pull back after this event, which makes a great time to use an Iron Condor strategy.

With this strategy, you get to buy below the market and sell above the market trading two different spreads. A spread has a floor and a ceiling, which gives the range of the market that can be traded. You can trade it long or short and you won’t lose or win past the floor or ceiling of the range. Buy a Nadex GBP/USD spread below the market but with the spread ceiling where the market is trading at the time. Sell a Nadex GBP/USD spread above the market but with the spread floor where the market is trading at the time. You also want your Iron Condor to have a $30 or more combined profit potential.

Using the spread scanner at www.apexinvesting.com, you will easily see what spreads are available and which ones meet your parameters. You just need a Nadex demo or live account, which is easy to set up. Below you can see an example of the scanner displaying Nadex GBP/USD spreads. The floor and ceiling numbers are listed down the middle. The Risk/Reward is listed to the outside. If you are selling the spread, the Risk/Reward is on the left of the spread and if you are buying the spread, the Risk/Reward is listed to the right.

To view a larger image click HERE.

The spreads will not always meet all the parameters and then, of course, you shouldn’t enter the trade. However, when all the parameters are met, enter both sides at the same time. Each spread should have approximately $15 or more profit potential and that is all you should risk as well. Therefore, where the market would reach approximately 60 pips up or down is where your stops should be or where you should call the trade and exit. At either of those points up or down, one side will have made full profit and the other side will have around a $45 loss, for a $30 net loss.

When the market stays between your sell price and your buy price, that is the range area you will make profit with the Iron Condor strategy. At expiration, if the market has either not moved and just remained where it started, centered between your spreads, or if it has moved but also pulled back to that point, you will have Max profit. You can determine your profit amount by taking the total profit potential and then subtracting $1 for every tick away you are from where the market started.

To see a complete calendar of weekly events to trade along with trade strategies, go to www.apexinvesting.com, where you can get free training and education on trading Nadex binaries, spreads, futures, forex and CFDs. Nadex is a US based CFTC regulated exchange which can be traded from 48 different countries.