BIG Question regarding the CHF crisis | Forex Factory

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BIG Question regarding the CHF crisis

  • #1
  • First Post: Jan 17, 2015 12:41am Jan 17, 2015 12:41am
where are all the entry orders that would've been below and around 1.0200 before the announcements, how did they all disappear so quickly, there would've been plenty of big orders below UC1.02 and EC1.20 to soften the fall instead of the big gap down we saw, as this caught so many big players by surprise, most of these people wouldn't have cancelled their orders in time, so the big question is, who is on the other side of these trades? who's got filled shorting the U/C and E/C on the way down?
  • #2
  • Jan 17, 2015 12:59am Jan 17, 2015 12:59am
Exactly what I am wondering about. Who was in the Know? Swiss Banks?
  • #3
  • Jan 17, 2015 1:03am Jan 17, 2015 1:03am
Swiss gov earned all profits, switzerland is big fraud country they have nothing but banks, and banks are biggest fraud scheme running on planet earth.
Don't speculate trade with surety.
  • #4
  • Jan 17, 2015 1:29am Jan 17, 2015 1:29am
Quoting KingHussain
Swiss gov earned all profits, switzerland is big fraud country they have nothing but banks, and banks are biggest fraud scheme running on planet earth.
Search "The Secret of Switzerland's Success," by Wolfgang Besserer. Or just connect Switzerland with masonic and see what comes up...
  • #5
  • Jan 17, 2015 1:39am Jan 17, 2015 1:39am
Quoting TheCat
where are all the entry orders that would've been below and around 1.0200 before the announcements, how did they all disappear so quickly, there would've been plenty of big orders below UC1.02 and EC1.20 to soften the fall instead of the big gap down we saw, as this caught so many big players by surprise, most of these people wouldn't have cancelled their orders in time, so the big question is, who is on the other side of these trades? who's got filled shorting the U/C and E/C on the way down?
It is possible that the selling pressure was so large that it eclipsed any buying momentum (assuming that those orders you talk about were triggered).
  • #6
  • Jan 17, 2015 3:39am Jan 17, 2015 3:39am
Quoting TheCat
where are all the entry orders that would've been below and around 1.0200 before the announcements, how did they all disappear so quickly, there would've been plenty of big orders below UC1.02 and EC1.20 to soften the fall instead of the big gap down we saw, as this caught so many big players by surprise, most of these people wouldn't have cancelled their orders in time, so the big question is, who is on the other side of these trades? who's got filled shorting the U/C and E/C on the way down?
How did they disappear so quickly?

Everybody bought swissie so these orders where gone in a nanosecond.

Then stoplosses (the ones that got triggered) caused a deeper plunge.

These big orders were not so big compared to the swissie tsunami coming to them.
  • #7
  • Jan 17, 2015 4:15am Jan 17, 2015 4:15am
nanoseconds?

what I'm referring to are, if no one "knew" at all what was going to happen, in normal trading hours like any other day there would have been orders worth hundreds of millions euros below and around 1.0200 spread around all the biggest liquidity providers, when that news hit, the price was pretty much at its daily high, rather than unwinding for the first couple of minute, instead crashed instantly... that means either one OR both things happened, 1) every bank/liquidity provider knew and filled these orders to themselves at that moment and made them "disappear", or 2) some group of people who knew, with a lot of money spread out in all these banks waiting to hit the trigger as they already know in advance exactly when the news would come out...

this is the only explaination how quickly all these orders could disappear within virtually milliseconds of the news coming out...
  • #8
  • Jan 17, 2015 4:51am Jan 17, 2015 4:51am
this is the instant before the plunge, you can see the final candle, where it opens near the top, goes even higher up again, before plunging straight down without resistance, it would be interesting to see the actual tick data, I was busy that afternoon and wasn't trading, so I didn't witness this 60 seconds so I can only rely on the 1 minutes chart, but certainly the plunge took less than 60 seconds, as the final candlestick did not plunge straight from open...

if anybody who set their stop loss around 1.0190-1.0200 and was not filled until 0.8700ish, there clearly is a problem, again it would be interesting to know who took the other sides of the trades that would've been situated under and all around 1.0200~ish within that crucial 30 seconds, although I don't think we will ever find out
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  • #9
  • Jan 17, 2015 4:58am Jan 17, 2015 4:58am
Keep in mind algo trading is a big part of the market and is also what made the flash crash in stock markets years ago. Some of these will go nuts with volatility like this and keep adding to their shorts. However i too agree that it is weird to not see ANY counter- fluctuation(pending order) at all, not even a 5-8 pip on many /chf 1min charts.
  • #10
  • Jan 17, 2015 7:01am Jan 17, 2015 7:01am
algo trading will explain it once the price starts dropping below a certain price, but to not see any sort of buying action at all right from the word go is inexcusable, this basically have to mean that either the "unexpected" news release have spread to every single liquidity provider within 60 seconds (it takes that long to even type the message and press send), or a group of people were ready to pull the trigger at every bank and liquidity provider, either way the only explaination is a lot more people know about this than they want you to know... so either everyone cancelled all these pending orders within seconds... or else who are the people on the other side of all these pending orders? We may never find out... but we definately know something is not right...
  • #11
  • Jan 17, 2015 2:50pm Jan 17, 2015 2:50pm
Quoting KingHussain
Swiss gov earned all profits, switzerland is big fraud country they have nothing but banks, and banks are biggest fraud scheme running on planet earth.
LOL! This comes from someone who says in its profile that he is trading from Liechtenstein. - How ironic..
..
  • #12
  • Jan 17, 2015 4:17pm Jan 17, 2015 4:17pm
Quoting Slicktick
{quote}LOL! This comes from someone who says in its profile that he is trading from Liechtenstein. - How ironic..
Liechtenstein is NOT Switzerland. It's another constitutional monarchy country located in Europe right besides Belgiuum.
Make your losses in demo. Earn your profits live.
  • #13
  • Jan 17, 2015 5:46pm Jan 17, 2015 5:46pm
Quoting Forexia
{quote} Liechtenstein is NOT Switzerland. It's another constitutional monarchy country located in Europe right besides Belgiuum.
Well, I think you mean Luxenbourg.

Liechtenstein however is a (good) neighbour of Switzerland. In fact, even the currency of Liechtenstein is CHF.
..
  • #14
  • Jan 17, 2015 7:59pm Jan 17, 2015 7:59pm
I would love to see how the brokers handle the retail trader who was actually short the swiss pairs. Will they give them the profit or will they requite them? And if they requote them due to whatever reason they give why wouldn't they requite all the people who lost? Robbery lol.
  • #15
  • Jan 18, 2015 10:48pm Jan 18, 2015 10:48pm
As far as I can tell, and as many fx brokers reported, there were issues with liquidity providers. That would mean that there were no trades activated until the lower price level. Now, this is a bit of a guess (based on the stock markets and some of what I have read thus far), but the LPs probably use circuit breakers as part of their risk mitigation strategy. That would mean ALL trading through them was halted for a few m/s. Then those trades got filled when the systems kicked back in at the lower price. All of those LPs suddenly halting trading would certainly explain such a dramatic move and why the chf pairs went totally unbid.
"Risk comes from not knowing what you're doing." - Warren Buffett
  • #16
  • Jan 18, 2015 10:55pm Jan 18, 2015 10:55pm
A lot of people probably had short orders underneath there, just in case the SNB did exactly what they did.
  • #17
  • Last Post: Jan 19, 2015 5:08pm Jan 19, 2015 5:08pm
Quoting TheCat
where are all the entry orders that would've been below and around 1.0200 before the announcements, how did they all disappear so quickly, there would've been plenty of big orders below UC1.02 and EC1.20 to soften the fall instead of the big gap down we saw, as this caught so many big players by surprise, most of these people wouldn't have cancelled their orders in time, so the big question is, who is on the other side of these trades? who's got filled shorting the U/C and E/C on the way down?
This is the million dollar question... no one has answered this and if you listen to what some retail brokers said... the liquidity providers were unable to provide them with prices... and the spread was widen... I witnessed the event! There as a big move down... it is impossible for the orders to disappear, impossible that quickly, there is no chance that ALL orders were done by algo's... I have seen flash crashes before... and you will see algo's buying as the price crashes and did you hear about brokers going broke/bust? or saying that they were not provided with liquidity.... this was different! There needs to be an inquiry as to what has happened and people need to know... I am so surprised that FCA or anyone is not investigated what has happened here!

What the banks did was wicked! They protected their own interest, they knew people were on the wrong side and they were on the right side of the trade and had to collect their winnings... people knew what was going on, there is no way the market would move like it did without being in the know. Once liquidity gets taken out... spread increases/widens and price hits the nearest available price, no matter how far away it is and if you have a look at the tick data this will tell you the truth!

Also if you know what some is going to keep buying or selling a currency (a single organisation), then you know the sharks will circle... like The London Whale...

http://www.bloombergview.com/quicktake/the-london-whale

You have been had! People should be going to prison for this!
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