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The CHF tsunami - 15 January 2015

  • #101
  • Jan 16, 2015 4:05am Jan 16, 2015 4:05am
Quoting Mroue26
{quote} what do you mean????? They are not responsible of losses done yesterday? So ... Traders lost will pay and traders who won will get paiiiiiiiiiid :d
IDK bro. I just know that they just declared they are entering insolvency. I would presume all funds will be locked up. Hope you are not trading with them. GL to you though. I pray for you.


Insolvency occurs when an individual or a firm is unable to meet its financial obligations. Accounting insolvency happens when total liabilities exceed total assets (negative net worth). Cash-flow insolvency involves a lack of liquidity to pay debts as they fall due.

DEFINITION of 'Insolvency:

When an individual or organization can no longer meet its financial obligations with its lender or lenders as debts become due. Insolvency can lead to insolvency proceedings, in which legal action will be taken against the insolvent entity, and assets may be liquidated to pay off outstanding debts.

INVESTOPEDIA EXPLAINS 'Insolvency'
Before an insolvent company or person gets involved in insolvency proceedings, it will likely be involved in more informal arrangements with creditors, such as making alternative payment arrangements. Insolvency can arise from poor cash management, a reduction in the forecasted cash inflow or from an increase in cash expenses.
  • #102
  • Jan 16, 2015 4:16am Jan 16, 2015 4:16am
I wonder if there is any way we can suit SNB for "misleading" or cheating investors. 3 days ago they said the peg was a fundamental pillar of their monetary policy, and back to Dec 18th 2014 Mr. Jordan said that they would defend the peg with uttermost decision.

They lied, cheated and they knew many people would get hurt by a surprise announcement. If any of us would even try to manipulate the market, he would end up in jail.

These guys bankrupt brokers and traders, and get an applause? There is a liability here, a serious institution cannot say one thing amd make the opposite.

How can we get organized to suit the crooks?
  • #103
  • Jan 16, 2015 4:20am Jan 16, 2015 4:20am
Quoting oxiron
I wonder if there is any way we can suit SNB for "misleading" or cheating investors. 3 days ago they said the the peg was a fundamental pillar of their monetary policy, and back to Dec 18th 2014 Mr. Jordan said that they would the defend the peg with uttermost decision. They lied, cheated and they knew many people would get hurt by a surprise announcement. If any of us would even try to manipulate the market, he would end in jail. These guys bankrupt brokers and traders, and get an applause? There is a liability here, a serious institution cannot...
Yes I agree. I remember those news reports a few days ago. What I don't understand is most CB's give the market warnings, as to what they will be doing as to not scare the market into a total collapse. I have no idea what they were thinking except they weren't thinking about anyone other them themselves. Bankers will always stay fat. They never lose.
  • #104
  • Jan 16, 2015 4:20am Jan 16, 2015 4:20am
Sure a lot money was wasted but im sure a lot of people turned in to millionaires after this event.
  • #105
  • Jan 16, 2015 4:22am Jan 16, 2015 4:22am
Quoting oxiron
They lied, cheated and they knew many people would get hurt by a surprise announcement.
Ermmm, pretty much like every politician in the world and we will NEVER ever be able to do anything about it.
  • #106
  • Jan 16, 2015 4:29am Jan 16, 2015 4:29am
What an absolute mess. Commiserations for those affected.

For those that don't know, most brokers hedge their trades by bucketing their trades into A/B piles. The majority fall in to the B bucket, which indicates they're a very likely loser and so their trades do NOT get hedged into the real market . This is contrary to the official line of course but whatever. The upshot is a few more brokers will be teetering on the edge of bankruptcy if not there already.

On the plus side, if your broker is still standing at the end of this, it shows they're robust.

For those that escaped yesterday's mayhem, my view is that the only reason SNB gave zero warning about completely removing the peg is that they know what's been bubbling is now a definite - ie EUR money printing. A lot's been priced in already, and the moves obviously won't be as dramatic, but still there's more shorting of EU to go. Historically, EU is twice was it was in 2001 against the dollar and over the coming months, a move down to parity wouldn't surprise me.
  • #107
  • Jan 16, 2015 5:19am Jan 16, 2015 5:19am
Attached File(s)
File Type: pdf DIBS Trade - 2014-09-05 to 2014-09-12 - CABLE hourly chart - Scottish Independence Vote.pdf   1.6 MB | 855 downloads
IN CASE YOU'VE FORGOTTEN...

The last time I saw a gap like this, it was on the Monday after the Scottish Referendum announcement.

The Scots were saying that they were considering leaving the UK and there was a HUGE gap on CABLE.

In the hours after that, a perfect DIBS setup formed, and there was a big upswing in profits over the next few days.

I made a (clumsy) .pdf of the trade -- sorry, but I cannot do "screenshots" on this public computer,
the function has been disabled.

Anyway, as I write this, it's Friday, Jan 16th, 2017h in Tokyo, and an IB may be forming as I write this on EUR/CHF.

Keep your eyes peeled.
Attached Image (click to enlarge)
Click to Enlarge Name: lingerie.jpg Size: 141 KB
HELL IS EMPTY, ALL THE DEVILS ARE HERE. -- Shakespeare
  • #108
  • Jan 16, 2015 5:58am Jan 16, 2015 5:58am
Made a nice "little" gain with 2 USD/CHF short trades...
Attached Image
  • #109
  • Jan 16, 2015 6:33am Jan 16, 2015 6:33am
Quoting alayinizAMK
Sure a lot money was wasted but im sure a lot of people turned in to millionaires after this event.
I dont think a lot of traders will profit from this.
Either the broker go bust or they will enter survival mode and requote or rewrite the trades.

The only guys that profit from this situation is the real economy: the swiss guys that saw all their asset increase 30% in value.
  • #110
  • Jan 16, 2015 6:47am Jan 16, 2015 6:47am
Quoting Mroue26
{quote} what do you mean????? They are not responsible of losses done yesterday? So ... Traders lost will pay and traders who won will get paiiiiiiiiiid :d
Yes Alpari are responsible for any losses passed onto them from their clients who have exceeded their account equity. Here are two announcements, one from Reuters and one from Alpari themselves.

http://uk.reuters.com/article/2015/0...0KP10720150116
http://www.alpari.com/company-news/p...-announcement/

Even though Alpari's statement says their retail client funds are segregated, take caution... If I were you I would withdraw all your funds, at least until there's more information released on Alpari's insolvency problem in the coming weeks.
  • #111
  • Jan 16, 2015 6:52am Jan 16, 2015 6:52am
Quoting pierre23
{quote} Yes Alpari are responsible for any losses passed onto them from their clients who have exceeded their account equity. Here are two announcements, one from Reuters and one from Alpari themselves. http://uk.reuters.com/article/2015/0...0KP10720150116 http://www.alpari.com/company-news/p...-announcement/ Even though Alpari's statement says their retail client funds are segregated, take caution... If I were you I would withdraw all your funds, at least until there's...
yes but i mean.. they will transfer the funds to my bank account?
  • #112
  • Jan 16, 2015 6:55am Jan 16, 2015 6:55am
Quoting felixis
{quote} I dont think a lot of traders will profit from this. Either the broker go bust or they will enter survival mode and requote or rewrite the trades. The only guys that profit from this situation is the real economy: the swiss guys that saw all their asset increase 30% in value.
It is easy to postulate like I do now after events unfold but I somehow knew that the Swiss won't let CHF fail for now along with EUR. I don't know how people read these event but for me it looks like EU currencies is in deep sh*t and other currencies will follow with dramatic actions after this event. Looks like a currency war is about to start. I think i will search cover in african currencies or something like that. The ruble also seems to be a good choice after the recent boom it now looks like busting.
  • #113
  • Jan 16, 2015 7:00am Jan 16, 2015 7:00am
Quoting RFMagus1
For us retail types, Forex is gambling by another name. Only difference is that we can't see the deck of cards as they're dealt.
Spot on mate. I can't justify it any other way.
  • #114
  • Jan 16, 2015 7:02am Jan 16, 2015 7:02am
Fingers crossed to anybody out there who still has funds with alpari. Hopefully they will eventually pull a rabbit out of the hat and manage to sort this out.
I have a very small amount with Alpari, my other account with Deltastock suffered losses as well but luckily the company will cover my losses.
So have patience, FCA's procedures are very clear and well structured.
  • #115
  • Jan 16, 2015 7:06am Jan 16, 2015 7:06am
Quoting Mroue26
{quote} yes but i mean.. they will transfer the funds to my bank account?
I'm not sure, give it a crack. You said you withdrew $2,000 so try for the rest, just to be safe. Otherwise, if you think your funds are still ok with them don't worry about it . If a company I was dealing with who was holding onto my money just announced entering insolvency, I know I would at the very least withdraw all of it until it became clear what was going to happen to them first.
  • #116
  • Edited 7:28am Jan 16, 2015 7:09am | Edited 7:28am
Quoting pierre23
{quote} I'm not sure, give it a crack. You said you withdrew $2,000 so try for the rest, just to be safe. Otherwise, if you think your funds are still ok with them don't worry about it . If a company I was dealing with who was holding onto my money just announced entering insolvency, I know I would at the very least withdraw all of it until it became clear what was going to happen to them first.
i reallyyy dont know what to do.. they just blocked the LOG-IN page im not able to log into my account but on metatrader they;'re still there :/
basically in trading people lose and win .. and people's money who loses goes to the other who win, i hope they figure something out its been 2 years trading with them
my total loss was $7500
now after i won my money back with profits i was so happy but now im just frustrated
  • #117
  • Jan 16, 2015 7:14am Jan 16, 2015 7:14am
Quoting Mroue26
{quote} i reallyyy dont know what to do.. they just blocked the LOG-IN page im not able to log into my account but on metatrader they;'re still there :/
Just noticed every single link on their website directs to that insolvency announcement. I would contact them as soon as you can to find out what you can do to withdraw your funds... I would say they would email all their customers in the coming days with more information on this.
  • #118
  • Jan 16, 2015 7:30am Jan 16, 2015 7:30am
Quoting pierre23
{quote} Just noticed every single link on their website directs to that insolvency announcement. I would contact them as soon as you can to find out what you can do to withdraw your funds... I would say they would email all their customers in the coming days with more information on this.
i tried to call but the answer machine said "We are not answering phone calls at the moment, please get back to the website for more announcments"
  • #119
  • Jan 16, 2015 7:34am Jan 16, 2015 7:34am
Lots of opportunities on the chf pairs. Look for a significant retrace on most in the next coming days
Good luck and may the odds be ever in your favor!
  • #120
  • Jan 16, 2015 7:41am Jan 16, 2015 7:41am
My sympathy to everyone who was on the wrong side yesterday and specially with the ones who's brokers are going under.

Did not expect this from the Swiss. Hurting their own economy as well.
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