Oh, and for everyone here crying and cursing their broker for not honoring the stop loss learn what a stop order is: it's an instruction to your broker that once a price is reached he should execute your order at the best available price. It's basically a market order. Market orders are never guaranteed. If the best available price was 1000 pips lower than your stop then bad luck.
I think those who were long EURCHF and had the pair suspended for 1H should thank their broker because in that hour the pair recovered some 1500-2000 pips. A 1000 pips loss is better than 3000 which could have easily been regarded as `best available quote`.
{quote} Why? Everything you said means loses for SNB because any hint that they are going to drop the peg meant even more pressure on them. Why are they obliged in any way to take loses for us? They didn't recommend to anyone to short their pair currency and the cap purpose was not to encourage any trader to exploit their peg on their expenses. A peg my be announced and spare the bank of some loses, but the only way a peg can be dropped is by surprise. Any other way means huge loses for any CB which they are not bound to take so that us get rich...
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They should have introduced massive negative rate first, making it very expensive to hold CHF. Then abandon the cap after some time. Money would search for another so called safe heaven, even when massive QE by ECB.
{quote} They should have introduced massive negative rate first, making it very expensive to hold CHF. Then abandon the cap after some time. Money would search for another so called safe heaven, even when massive QE by ECB.
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Yes, because they'd rather f*ck their pension funds and credit market with their massive negative interest rate to protect all those who exploited their peg at their expense...
{quote} Yes, because they'd rather f*ck their pension funds and credit market with their massive negative interest rate to protect all those who exploited their peg at their expense...
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But there are different conditions for each acc, for example cantons are not affected. Have u read the statement when they introduced -0,25%? They can aim negative rate as they want...
{quote} Why? Everything you said means loses for SNB because any hint that they are going to drop the peg meant even more pressure on them. Why are they obliged in any way to take loses for us? They didn't recommend to anyone to short their pair currency and the cap purpose was not to encourage any trader to exploit their peg on their expenses. A peg my be announced and spare the bank of some loses, but the only way a peg can be dropped is by surprise. Any other way means huge loses for any CB which they are not bound to take so that us get rich...
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Correct me if I am wrong but the role of a CB is to maintain price stability and not to make profit. Once you mention profit where a CB is involved,then there is a conflict of interest because any CB governor can easily buy or sell their home currency and then jawbone accordingly if they are looking to make profit. Alternatively, the SNB could just have easily pulled their reserves at 1.20 and walked away at breakeven and left the market to stabilize a few pips below 1.20 and not 1800 pips below! Moreover, they can not lose money if they can print the money on demand.
Either way, I suspect someone in the SNB wanted to make a huge profit and so there is definitely some insider trading that went on there and I really do not believe we've heard the end of this matter.
It would still mess with their bank system: either the banks would absorb the losses for not passing costs to those who borrow them money or they'd risk lack of liquidity for not being borrowed (through deposits) because they are passing the costs to clients. Anyway, it would mess a large part of their economy and for what, again? They had no obligation to forex traders. Either we like that or not, that is the truth. Those who lost have to accept their losses, those who won can praise their profits and everybody should move on without throwing blame on anybody else than them.
Guys, dont waste ur time arguing with members paid to write in brokers favor.
I can speak by WE in the name of swiss people not just people on this thread.
The bandwagoners here want to comment when they have not been affected by swiss nb scandal. Easy to comment when nothin to loose than sometime typing on keyboard.
Do you even have tv or radio? have you heard the loud voices of big swiss companies, screaming crying that they went bankrupted from swiss nb stupid decision?
who will buy swiss products anymore???!!!! hey can you c CHF strengthened vs every other currency not just euro or dollar
Our losses nothin compared to the billions of swiss comp. you know who to blame
Believe it or not, no conclusion to swiss nb decision other than they being total stupids believing if they apply -0.75% and remove cap at once both will cancel each other in influencing market price!!!
swiss nb members must be sued for this disgrace!!!!!
{quote} But there are different conditions for each acc, for example cantons are not affected. Have u read the statement when they introduced -0,25%? They can aim negative rate as they want...
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When they introduced the -0.25 rate, trading went 100% long EURCHF wich produced the largest bounty in a long time in the fx market, of course the Swiss bankers would pull the rug and collect the easy money by droping the ceilling. Tough for us traders and for Swiss firms. But that is the way this thing goes. The markets have been ambushed by the SNB, today they claim victory but in the near future they will regret what they did because credibility is everything in the markets and the SNB took a big loss of credibility today.
{quote} When they introduced the -0.25 rate,trading went 100% long EURCHF wich produced the largest bounty in a long time in the fx market, of course the Swiss bankers would pull the rug and collect the easy money by droping the ceilling. Tough for us traders and for Swiss firms. But that is the way this thing goes. The markets have been ambushed by the SNB, today they claim victory but in the near future they will regret what they did because credibility is everything in the markets and the SNB took a big loss of credibility today....
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And what did they say then? That is additional measure, which helps maintain cap, and they are ready to do more. Great honesty.
{quote} Correct me if I am wrong but the role of a CB is to maintain price stability and not to make profit. Once you mention profit where a CB is involved,then there is a conflict of interest because any CB governor can easily buy or sell their home currency and then jawbone accordingly if they are looking to make profit. Alternatively, the SNB could just have easily pulled their reserves at 1.20 and walked away at breakeven and left the market to stabilize a few pips below 1.20 and not 1800 pips below! Moreover, they can not lose money if they...
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Absolutely. The first to have been stabbed in the back is the Swiss industry. I don't know to whom the SNB board is accountable to, but what they did seems criminal to me. Again, I have lost nothing and I'm not saying that in the interest of who did.
year 2008 i went long ISL krona at Saxo, and it also crashed the next day, same as Swiss today (but slower, so i had the time to close positions, in continuing crash, .. i lost 30%-40 on the account (dont remember, i know i bought a milion ...LOL), and i had the same feeling that they Will not margin call you, but they would do demand it to be filled it up if it would turn negative... so my suggestion is to just send them e-mail, that you reject it, and ignore all future claims by them. They are not nice brokers, they trade against you from year 2009, if your account is less then 750K, so they should margin call you, when your balance was 0....crazy broker, evrything nice, but they are, as all are there to make their own /profit. regards from slovenia,
Now i am still long yen (cash positions)...selling euros, buying yens, NOK and SEK
Annual value of Swiss export is 264 billion dollars with main directions located in Europe (about 40%). It means that Swiss economy can have serious troubles, because prices of its goods rose by about 15% today. I expect that SNB will be present in the market in coming months.
1. Swiss industry is hurt indeed, but those who are now hurt wouldn't even exist anymore in the industry has the SNB not intervene in the market 3 years ago.
2. Currency interventions and artificial value are only a temporary measure to counteract different types of crisis and should only be regarded as an opportunity to slowly adjust. If Swiss exporters thought they would benefice SNB blessing indefinitely in the continuous worsening EU economy, despite history proving over and over again that these kind of measures are only temporary, then it's their fault for not having an adequate economic education and for not taking all the measures during these 3 past years of assistance from behalf of SNB to set off the effects of a possible stronger currency.
3. Not even one CB is interested in protecting speculators which make their interventions even more expensive. They don't exist on their agenda no matter how big or small. When you speculate you do it wittingly that no one is to blame for your losses than yourself.
4. Dropping the peg sure hurts Swiss industry, but the bad it is going to make is definitely smaller than the bad it would have caused a passive attitude in 2011.
I have just received this letter. Does it mean that i will have to pay more money to my broker?
In a surprise move, the Swiss National Bank concluded today that the 1.20-per-euro cap is no longer justified, and, additionally, cut the interest rate on sight deposits and the target range for the 3-month LIBOR.
All this resulted in a 20% surge of the Swiss currency against EUR and other majors.
Due to today’s exceptional market volatility in CHF currency pairs, all brokers and banks worldwide, including Admiral Markets and its liquidity providers, have been filling orders in extremely abnormal market conditions.
Once the true market liquidity will be established with more clarity, all executed fills will be revised and amended to more accurate levels.
This may result in a worse execution fills than currently reflected in your account's history.
We are doing our outmost to speed up the revision, however, please be aware that the end-of-day account statement for January 15th with any transactions in CHF may be recalculated.
We kindly apologize for any inconvenience this may have caused.
i say to guys asking if must cover negative balances? Never ever transfer any funds to your brokers regarding this issue.
Tell them to fxck off, seriously, they cant even bite ur axx
instead, search how u can bring back some money by reviewing the auto exit prices ur account got stopped at you must still have some money in it due to margin requirements....etc
they must pay u...be aware of this point...ask for ur rights
