Trade Tip For ECB's Minimum Bid Rate

This news report is scheduled eight times a year by the European Central Bank (ECB) regarding short-term interest rates, which can seriously affect currency valuation.

On Thursday, April 21, 2016 at 7:45 AM ET, the Minimum Bid Rate will be released. One can trade this bit of news using Nadex spreads entering as early as 6:00 AM ET for an 8:00 AM ET expiration.

This trade strategy is an Iron Condor using two spreads: one bought Nadex EUR/USD spread below the market but with its ceiling where the market is trading at the time, and one sold Nadex EUR/USD spread above the market, but with its floor where the market is trading at the time.

A Nadex spread is an option designed for day traders to trade a range of a specified market, between the floor and ceiling numbers. A spread can be traded long or short but profit and loss is capped at the floor and ceiling. The trader knows ahead of time what the max risk is. Risk is still managed to a 1:1 risk/reward ratio.

For this trade, the profit potential is $20.