What would happen to our trades in the event of a Euro collapse?

I am wondering what everyone thinks might happen to any open trades, in the event of a collapse of the Euro currency?

Let's assume for a moment that the Euro completely collapses, and all the countries in the Eurozone decide to revert back to the currencies that they used to have. And, let's assume that one has a short position on the EURUSD. Would that trader's broker/dealer honor the trade?

I pulled up the EURUSD chart just now, and took a look at it. The price is currently hovering right around the $1.3300 area. That means, that there is approximately 13,300 pips between here, and the zero point, which is where the Euro would be at if it were defaulted and were to stop being used. I am assuming a worst case scenario here, where the Euro collapses suddenly overnight. Lets say I have a short position, with a 200pip stop loss, but no take profit order (or, a take profit order very close to the absolute bottom). So technically, I could make 13,300 pips on the trade, as it slams past parity, and all the way down to 0.00000.

Would the broker honor the trade? Or, would they pull a fast one and decide that the trade in invalid and just cancel the trade? Or, would they honor the trade, and suddenly jacking the spread to 13,300, meaning the trade closes out, with you paying spread and getting nothing for the trade (remember, you pay spread when you "buy the pair")?

Just for kicks, I logged into my Practice trading account and opened a Short position, at 1.33158, with a Stop Loss at 1.35000 and a Take Profit at 0.00001. Risking $28000 to make $1,065,320. Heheheh.

Very interested myself.

If it's a dealing desk broker, most likely not. There are threads here where dealing desk brokers have reversed profits.

If an ECN broker, then I don't see why they wouldn't honor it. After all, you're supposedly trading with banks.

And I'm not sure if it'll immediately tank overnight.

No it doesnt work that instantaneous.

Before they rescind a currency they will need to reintroduce physical currency in its place and make allowances for vending machines etc.
They will then give you time to convert your euro's before they go out of circulation.

Nice try though .. i like the way you are thinking ..

Really interesting assumption. I hope Euro will not much collapse.

in the event of collapse we will all make money if we are short the euro !!!!!

Well... the way I understand a trade is that if you are short EUR/USD you borrow Euros and use them to buy USD, using your account as a garentee. So if the Euro fell to zero, then you should still own the USD. So if you had one standard lot, you should be the proud owner of 100,000 USD and owe liabilities of about 80,000 Euros. And if your liability of 80,000 Euros could be paid off with one dollar... then you should net 99,999 USD.

However there are a few potential problems, the biggest being that this would create a run on financial institutions and even if your account was insured (possible but not likely) I am pretty sure that your 100,000 in winnings would not be. But you can always hope.