News Event In The Middle Of The Night, Trade The Night Before

Office for National Statistics will release Manufacturing Production and Industrial Production for the UK Wednesday, March 9, 2016. Manufacturing has to react quickly to the business environment and makes up around 80 percent of production. Industrial Production makes up around 20 percent of overall production.

The news is released at 4:30 AM ET, Wednesday, March 9, 2016. The GBP/USD is a great market to trade for this event and you can put your trade on the night before.

Using Nadex spreads, you can put your trade on as early as 11:00 PM ET the night before for 7:00 AM ET expirations. Nadex lists day trader options such as binaries and spreads. When you trade a spread long or short, you are trading a derivative of an underlying market. In this trade, you are trading GBP/USD using Nadex spreads. A spread is a range of the market. It has a floor and a ceiling, which you cannot win or lose past, depending on the direction you traded the spread.

With the floor and ceiling, the spread has defined capped risk and reward and you know what each are upfront before entering the trade. The max risk is not your realistic risk because you can also place stop limit orders to manage your risk and exit at any time as long as there is an order on the other side.

Based on this market’s reaction to 12 -24 past news reports, the market tends to make a move and then pulls back. Traders can buy a Nadex GBP/USD spread below the market with the ceiling where the market is at the time and sell a Nadex GBP/USD spread above the market with the floor where the market is at the time.