Learn How To Trade Spreads With An Easy News Trade

Great Britain will be releasing numbers for Retail Sales in the middle of the night US time. This can still be an opportunity to trade a scheduled event. What, you don’t want to get up in the middle of the night? No problem, you don’t have to, just set your trade up using Nadex GBP/USD Spreads.

The Office for National Statistics will release the percentage change in inflation-adjusted retail sales for the last month at 4:30 AM ET, Thursday, September 17, 2015. You can put your trade on at 11:00 PM ET the night before with Nadex Spreads having a 7:00 AM ET expiration.

The strategy you are going to set up is an Iron Condor using two spreads. Spreads have a floor and a ceiling and if you plotted them on a GBP/USD chart, for this trade, you would want one right on top of the other stacked. The lower spread you want to buy with the ceiling where the market is trading at the time, and the upper spread you want to sell with the floor where the market is trading at the time. In this way, the ceiling of your lower spread will meet the floor of your upper spread, and will be where the market is trading at the time.

The Spread Scanner Makes It Easy To Find Your Spreads

There is a quick and easy way to find the Nadex spread contracts with the floor and ceiling that you want using the Spread Scanner. Besides having your ceiling and floor in the right place, you also want to set up your Iron Condor so you have a profit potential of $35 or more between your spreads. If you look at the image below, you will see the contracts are in bold in a column listed in the center. The number on the left is the floor and the number on the right is the ceiling. The sell information is on the left side of the scanner with Bid or price just to the left of the contract. The buy information is on the right. On the far left and far right you will see red and green bars showing you the Risk/Reward at the time, if you were to sell or buy that contract. With that information, you can see which contracts would be best for your setup.

This image shows contracts that are expiring at 3:00 PM; you will want your contracts to say 7:00 AM ET, Thursday. For this scheduled news event it has been found that the market tends to react and move but then pull back, which is an ideal move for an Iron Condor. Your max profit is when the market pulls back to center between your two spreads. You can leave your trade on until expiration if needed to give it plenty of time for the trade to play out.

If you can’t find the right spreads with the ceiling and floor at market for the right setup, or you can’t find spreads with enough profit potential then pass. Do not take a trade when you can’t find the ideal setup for the right entry.

To learn more about the Iron Condor strategy, how to trade Nadex Spreads and to access the spread scanner for free go to www.apexinvesting.com.