Today we have the FOMC minutes being released.  As most of you know, have a free ebook that identifies the market movement immediately after a market report.  Immediately being defined as the 15 minute bar immediately after the report.  Since I am not doing a live trading room this morning and we have a 2pm FOMC Minutes release, I wanted to go ahead and release this one portion of the report.

Each $ sign in the table below represents 50 ticks of movement.  Accordingly, the largest mover for the Futures Market is Gold and for Forex it is EURUSD and GBPUSD.

FOMC Minutes – Expected Movement for Each Market

FOMC Minutes

What’s the significance of knowing this information?  Out of the Money Binary Options!  For example, if I wanted to take an out of the money binary option, I now have the information needed to determine “how far” out of the money I can go.

Remember, Gold ends early (1:30 pm) so that eliminates Gold as a potential binary option because the report is at 2pm.  However, I could do the Dow, Nasdaq, FDAX, EURUSD, or GBPUSD.  On each one of these I could go up to 80 ticks out of the money (the average on these are 100 ticks).  On the ES (mini S&P 500), AUDUSD, USDCAD, USDCHF, and USDJPY, I can only go out about 30 ticks (average is 50 ticks on these).

With this information, I can identify the potential out of the money binary option range for any market report!  This allows me to lock in a lower risk trade and a higher risk to reward trade.