Wednesday, April 13, 2016, at 10:00 AM ET, the Bank of Canada will release the Monetary Policy Report, Rate Statement and Overnight Rate, the rate at which financial institutions lend money between themselves. These reports tend to get the USD/CAD market moving and to take advantage of the movement, a Straddle strategy is recommended by the Apex News Team.
Low Defined Max Risk, No Stops Necessary
Straddle strategies are great for capturing profit when a market may tend to take off with a big move.
For this setup, one can consider buying a Nadex USD/CAD spread with the floor being where the market is trading at the time of entry. Also, they can sell a Nadex USD/CAD spread with the ceiling being where the market is trading at the time of entry.
The max risk for each of the spreads should be no more than $20 for a combined max risk of approximately $40.
The reports are released at 10:00 AM ET; one can enter as early as 9:00 AM ET for 11:00 AM ET expirations.
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