Swiss Central Bank Moves Rock Currency

Historical movement occurred on CHF pairs after Swiss National Bank (SNB) decision and it’s after effect:

Forex market experiences a large amount of volatility on 15^th January 2015 mostly on chef pairs due to (SNB) declare to maintain a minimum exchange rate on EURCHF pairs. The SNB suddenly dropped the cap for their economic views.

After that SNB surprise decision, a huge fall happened on CHF pairs mostly on EURCHF. CNBC reported many banks, brokers, and hedge funds declared that they have to face big loose a lot at that time. Some broker also suspended trading on CHF pair by this time.

At the time of SNB decision, more than 90% of retails trade was in sell positions on EURCHF. (As per various broker reports). The market experienced extreme low liquidity and liquidity provider were not able to provide sufficient liquidity at the time. Due to lack of liquidly traders stop loss order could not be executed hence the price went at a surprising level where their equity went far lower than the balance. The worth of the negative equity thousands million of the dollar and the responsibility went to brokers themselves. This is also a caution of using high leverage on trading.

We had a running trade on GBPUSD buying at the time of SNB decision that went negative but didn’t trigger SL on most of our clients terminal due to large spread and they closed that trade with profit. But for the sake of transparency, we have counted this trade as a losing trade because chart price reaches to the SL price and updated on our website accordingly as a loss trade.

The overall situation is improving hope it would well settle down.