Trading Volatility FOMC and USDJPY

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The USDJPY historical average for today’s FOMC releases is approximately 146 pips (measured from high to low during 2pm and 3pm). Trying to trade these reports using either currency futures or spot forex could result in huge losses. However, with the limited risk provided by binaries and spreads, traders can still participate in these highly volatile releases with confidence that they will not lose more than they paid to enter the trades.

For those that are not as familiar with the FOMC Quad reports, the Economic Projections release was added in April 2011 but was not consistent in release dates until 2013. The FOMC Quad releases create higher volatility than when only the FOMC Statement, Federal Funds Rate, and FOMC Press Conference are released.

In this video, Gail Mercer, founder of TradersHelpDesk, shows you the different trade choices that the binary options and spreads provide. For example, a trader could choose either an At-the-Money binary or an Out-of-the-Money binary to either the upside or downside by simply deciding on how much they are willing to risk on the trade. The spreads offer an even better opportunity because risk and rewards are based on predetermined floor (which limits risk when buying or limits reward when selling) and ceiling levels (which limits reward if long or limits risk if short).

Nadex Risk Disclaimer
Trading on Nadex involves financial risk and may not be appropriate for all investors. The information presented here is for information and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument on Nadex or elsewhere. Any trading decisions that you make are solely your responsibility. Past performance is not necessarily indicative of future results. Nadex contracts are based on underlying asset classes including forex, stock index futures, commodity futures, cryptocurrencies, and economic events.
Trading can be volatile and investors risk losing their investment on any given transaction. However, the design of Nadex contracts ensures investors cannot lose more than the cost to enter the transaction. Nadex is subject to U.S. regulatory oversight by the CFTC.


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