First UK Retail Sales News For Trading Since The Brexit Vote

The first UK Retail Sales news based on the period after the June 23 Brexit vote to leave the European Union, will be released Thursday. While the Bank of England predicts an economic downturn for the future, economists think evidence will not be apparent quite this quickly. Nevertheless, it is tradable news and coming out in the middle of the night at 4:30 AM ET. To trade it, entry can be Wednesday, August 17, at 11:00 PM ET, using Nadex GBP/USD spreads expiring at 7:00 AM ET.

The strategy to set up is an Iron Condor, where one spread is bought below the market with the ceiling where the market is trading at the time, and one spread is sold above the market with the floor where the market is trading at the time. It’s a strategy meant to profit when there is implied volatility and the market makes a move, then pulls back to center between the two spreads and settles there.

For this trade, the combined profit potential is $35 or more, making it around $17 or more each spread. Using the Apex spread scanner, the right spreads are easily found by looking in the risk/reward column for GBP/USD spreads expiring at 7:00 AM ET, with around $17 reward potential. The remaining parameters can be verified and the trade entered.

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Should the market not pull back and just make a strong directional move, stops need to be in place. For this trade setup, stops should be placed where the market would hit 70 pips above and below, from where it was at entry. If the market is anywhere between the breakeven points at settlement, the trade will make some amount of profit. The breakeven points are 35 pips above and below. For every tick away from the center between the two spreads the market is at settlement, it is $1 less in profit. Max profit is when the market settles right between the two spreads at expiration.

More spreads can be traded as long as the same number of spreads is traded on each side. If there are no spreads meeting all the above qualifications, then don’t take the trade.

Free access to the spread scanner as well as free day trading education is available at Apex Investing.