Trade Opportunity With News Of Canadian Manufacturing Sales

Statistics Canada will be releasing manufacturing sales numbers Wednesday, March 16, 2016 at 8:30 AM ET. More specifically the numbers will show the change in total value of sales made by manufacturers since the previous month. Since manufacturers are affected by market conditions early, their change in sales values are a significant indicator of economic health. This event provides a trade opportunity trading Nadex Spreads. North American Derivatives Exchange or Nadex offers spread and binary derivatives of the underlying markets.

This trade setup calls for two Nadex Spreads creating an Iron Condor, a neutral and premium collection strategy. You can enter as early as 8:00 AM ET for 10:00 AM ET expirations. Spreads are derivatives and provide the opportunity to trade a range of an underlying market, having a floor and a ceiling.

An Iron Condor is neutral because you are trading two spreads in both a long and short position on either side of the market. Therefore, the market can go either direction and your position still has the opportunity to profit.

You want to buy a Nadex USD/CAD spread below the market with the ceiling where the market is trading at the time. You also want to sell a Nadex USD/CAD spread above the market with the floor where the market is trading at the time. The profit potential should be $25 or more combined between the spreads. To find your ideal spreads for the trade, go to www.apexinvesting.com and use the Nadex spread scanner. At a glance, you will find the spreads if they’re available.

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To profit, the market can move either up or down and then pull back, the market can stay where it is until expiration or the market can stay in a tight range. Be sure to enter limit take profit orders. One side may profit if the market moves far enough in one direction; however, leave the other spread on. If the market pulls back, the other side may profit as well. Max profit is when the market is right between the spreads at expiration and for every pip the market is away from that point at expiration, it is $1 less in profit.

Remember, you bought below the market and sold above the market. Therefore, the market can move a great deal up or down before hitting breakeven points or 1:1 risk/reward ratio points. The market can move 50 pips up or down for the 1:1 risk reward ratio points and that is where you should place your stop limit orders.

For a full calendar of events and strategies to trade them, go to www.apexinvesting.com. You will also find free education on how to trade Nadex binaries and spreads as well as futures, forex and CFDs. Nadex is a CFTC regulated US based exchange and can be traded from 48 different countries.