The Swiss franc event did not blow up and was trapped for three years to finally unwind the trade

  • 2023/2/26 10:56:13
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  • forextradingsessiontimes

Th forextrad forextradingmarketgtime trade case is extremely rare and worth every trader to understand According to the information disclosed by the foreign exchange dealer FBS, a client of this dealer bought EUR/CHF on the day of the forex trading session times franc event (January 15, 2015), which is described as the worst trade made at the worst time First, lets briefly review the so-called The Swiss franc event, on January 15, 2015, the Swiss central bank unexpectedly announced a rate cut and abandoned the EUR/CHF 1.20 exchange rate floor that had been maintained since September 2011, decoupling the Swiss franc from the euro The Swiss central bank lowered the call deposit rate to -0.75% and moved the target range for the three-month Swiss franc Libor rate further down to -1.25% to -0.25% Subsequently Violent market fluctuations, the euro plunged 21.48% against the Swiss franc to 0.9427, a record low, the dollar plunged 27.1% against the Swiss franc to a three-year low of 0.7426 Switzerland, European stock markets plunged, resulting in the largest market shock since the 1970s Swiss franc against 16 major currencies rose by more than 20% This black swan event in the foreign exchange market as a direct result of the huge volatility caused The lack of liquidity in the market, resulting in many foreign exchange platform losses, the British Ivory platform directly bankruptcy, the U.S. FFX loss of $ 225 million, the share price fell more than 80% Barclays Bank lost nearly $ 100 million, Deutsche Bank lost $ 150 million many small retail investors burst, the first time the cashback forex is a negative balance in this incident, if you trade the Swiss franc-related currency pairs, once you use more than 5 times the leverage, then you are sure to blow up your position! As you can imagine, almost although there are traders trading Swiss franc-related currency pairs are bursting, some people are also being claimed by traders because their accounts appear to have a negative balance Generally speaking, foreign exchange accounts burst, after losing all the funds balance is at least 0, one point is not why there is a negative balance, the reason is simple, in the account balance of zero bursting point can not be closed will lead to a negative balance However, this FBS The trader survived, he did not blow his position, he bought 4 single EUR CHF on January 15, 2015, the purchase price of 1.20 EUR CHF maximum decline of 2350 points that day, (different traders data varies greatly) so extreme market mistakes and did not blow the position, it is rare we do not know the traders account capital and position at the time, here is a simple speculation If he traded 0.04 lots of EURCHF, the maximum loss for the day would be about 2350 * 0.4 = $940, his account capital is at least $1500 to ensure that his position is not forcibly closed that day and he used less than 4 times the leverage for this transaction, it should be more than 3 times the time to April 19, 2018, the EUR/CHF since January 15, 2015 again touched FBS says this trader was using a no SWAP account, so its almost like he was all but out. Unfortunately, the owner of this account hasnt logged in since January 15, 2015, so I guess he didnt see the need to log in to a blown account. account, the amount would not be more than $50, traded 4 cents, so the trader did not care to lazy to check the account thought certain death Anyway, this trading case tells you that low leverage is the secret to your long-term survival in the foreign exchange market, but also to cope with extreme market conditions ultimate weapon more forex learning - forex introductory basics, how to speculate on foreign exchange, please visit: forex basics learning Column