Retail Sales and GDP Coming Out For Canada Means Trade Opportunity

This week Statistics Canada will be releasing Retail Sales numbers as well as the GDP. This news event will present a trade opportunity come Wednesday at 8:30 a.m. ET when the numbers come out. Retail Sales is the gauge of measure for consumer spending, as it is the change in total value of retail sales. Gross Domestic Product is a wide measure on economic activity and overall economic health. It is forecast that both will go down by -0.5 percent, which would not be good for currency.

However, this is still good for a trade using an Iron Condor strategy. This strategy will work to catch profit regardless of direction the market will go as long as it stays in a range or makes a move and pulls back. Fortunately, based on previous market reaction to these news reports, that is what the market tends to do after this event. To set up your Iron Condor you want to trade Nadex USD/CAD Spreads. Buy the lower spread with the ceiling where the market is trading at the time, and sell the upper spread with the floor where the market is trading at the time.

For this Iron Condor trade, you can enter as early as 8:00 a.m. for 10:00 a.m. expirations. You also want to have a $30 or more combined profit potential between the spreads. To find spreads easily and quickly at a glance, just use the spread scanner available free at www.apexinvesting.com. You will need a Nadex demo or live account, which is simple and takes only minutes to open. Nadex is a CFTC regulated US based exchange. Below you can see the spread scanner displaying Nadex USD/CAD spreads.

To view a larger image click HERE.

The spread scanner allows you to see the spread’s Risk/Reward, in the far left for selling the spread and the far right for buying the spread. Each spread should have around $15 of profit potential or more. If you’d like more profit potential, then you can always trade more contracts as long as you have the same number of contracts on each side. Also, be sure the spreads meet your parameters before entering; never force a trade.

The advantage of the Iron Condor is you are buying below the market and selling above the market, and as long as the market stays in that range, you will make a profit. Max profit is when the market makes a move and pulls back and the trade expires with the market right between your spreads. The market can move up or down 60 pips before you need to exit the trade. That is where the max 1:1 risk reward ratio will be. The market can remain where it is, stay in a tight range and chop around, or move and pull back, and your trade will still make a profit.

To learn more on how to trade the news along with strategies, go to www.apexinvesting.com. There you will find free education on how to trade Nadex binaries, and spreads as well as futures, forex, and CFDs. Nadex can be traded from 48 different countries.