Trading futures and forex after the FOMC announcement can be tricky. Although you may expect the market to move one way, sometimes it goes against you. However, with binary options and spreads, you can get some real deals on these trades.
Trading Futures and Forex After FOMC
In this video, Gail shares her trades with you before the FOMC announcement. She actually entered around 10:45 in the morning. Her risk was extremely low across the board on all her trades. After the announcement came out, some made money and some lost. However, because Gail uses a low risk approach, she was still profitable. She had five trades total:
- Gold – long on the weekly (currently at full loss)
- Nasdaq – short on the daily (won)
- Two trades on the USDJPY – long on both a spread and a binary (won)
- Emini Dow Jones – short on the daily (loss)
As you can see from the video, binary options and spreads allow you to limit risk, which is critical when volatility is expected. In this case, no only was volatility expected but there was also uncertainty as to how the markets would react to the Feds statement and assessment on the economy. The binary options and spreads allowed Gail to enter trades early in the day without fear of spikes against her positions or even worse, getting stopped out only to see the market move in your direction afterwards.