Trade the Early Nonfarm Payroll Release

This week, Nonfarm Employment change will be released two times. An early release, by Automatic Data Processing (ADP), comes out two days before the government and is scheduled for Wednesday, March 2, 2016 at 8:15 AM ET. Even though it’s the early release, this can move the markets, and be a good news event for trading. Nonfarm Employment change is also referred to as Nonfarm Payroll and is the change in the number of employed people during the previous month without the farming industry.

Market Can Move Three Ways With This Strategy

You can go for a profit potential of $30 or more using an Iron Condor strategy trading Nadex EUR/USD spreads. Buy a lower range spread with the floor below the market, and the ceiling at or very close to where the market is trading at the time. Sell an upper range spread with the ceiling above the market and the floor at or very close to where the market is trading at the time. With this strategy, you are buying below the market and selling above the market. The market can stay where it is, move in a range or make a move and then pull back and you could profit.

To find the spreads you are looking for, you can use the spread scanner. Below is an image of the spread scanner showing EUR/USD Nadex spreads. Notice the spreads down the center and the risk/reward in the columns on the outside.

To view larger image click HERE.

Each spread for this trade should have a profit potential of $15 or more for a combined profit of $30 and meet the floor and ceiling parameters above. You can enter the trade as early as 7:00 AM ET for a 9:00 AM ET expiration.

You won’t win or lose past the floor or ceiling of your spreads. This provides defined risk upfront and capped risk. To enter each spread, you pay the max risk upfront. You’re still only going to risk a 1:1 risk/reward ratio and place your stops at those points. Remember, you bought below the market and sold above the market. At expiration, if the market right was where it was when you entered, between your spreads would mean max profit on both your bought and sold spreads. The market can move up or down 30 pips during the trade at be at your breakeven points. If it makes a move up or down far enough, then one side will profit. When it pulls back, the other side could profit as well. Therefore, you need to enter stop limit orders to take profit. The 1:1 risk/reward ratio points are where the market moves up or down 60 pips and that is where to enter stop limit orders to manage risk.

The advantage to trading Nadex is the capped risk unlike futures or forex with unlimited risk. You can always trade more contracts on this strategy. Just be sure to keep the same number of spreads for each side.

Access to the spread scanner is available for all traders at www.apexinvesting.com. Apex is an educational trading company, providing live trade rooms, free education, leading indicators and a 17,000+ member forum. Nadex is a US based, CFTC regulated exchange and can be traded from 48 different countries.