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Forex changed forever!

  • #1
  • First Post: Jan 16, 2015 8:45am Jan 16, 2015 8:45am
On January 15, 2015 due to a unprecedented move by the Swiss National Bank. FOREX the 5.3 trillion per day market will never be the same.

USD/CHF moved over 2800 pips in 5 minutes

EUR/CHF over 4300 pips in 5 minutes

GBP/CHF over 3150 pips in 5 minutes

I plan to record in this thread how forex retail trading will emerge out of this catastrophic event.
So, you think you have rights? LOL
  • #2
  • Jan 16, 2015 8:58am Jan 16, 2015 8:58am
Retail traders have been scared for a while about regulators changing rules on the very unregulated forex market.

Some of the gossips go from, minimum of 10,000 $ account if you want to trade, 5 to 1 leverage, and even making retail forex trading illegal .

I believe that yesterdays events will speed up a lot of pending regulations.

Brokers are going belly up due to leverage, so I believe this point will be addressed fist.

Lawsuits will start to pop up, and it can stop retail trading for good.

I believe forex will become a elite game ( as it was before) where you will need a lot of money to play it.

What happened yesterday may be comparable to events that drove bucktshops to extinction on the 1900.
So, you think you have rights? LOL
  • #3
  • Jan 16, 2015 9:18am Jan 16, 2015 9:18am
Global Brokers NZ Ltd was the first causality reported by Bloomberg yesterday night.

ALPARI UK according to CNBC is insolvent.

FXCM shares dropped from 17$ to little over 1 dollar this morning. Their shares are currently not trading and it seems they need 230 million to keep going.

Checking around forums I can see people withdrawing ( or trying to) money. Which looks like a "run on the broker" in process.

It will be very interesting to see what kind of new regulations will emerge and how traders and brokers will adapt to it.
So, you think you have rights? LOL
  • #4
  • Jan 16, 2015 9:22am Jan 16, 2015 9:22am
I am afraid that ForexOracle will be right.
without huge leverage, making a living from a moderately small account will not be possible
  • #5
  • Jan 16, 2015 9:28am Jan 16, 2015 9:28am
Quoting felixis
I am afraid that ForexOracle will be right. without huge leverage, making a living from a moderately small account will not be possible
I can see an opportunity for though regulation to pass.

People are talking about a conspiracy to end retail trading, so now I guess we will see the truth.

If they really want to end or severely reduce retail trading they have the best excuses.
So, you think you have rights? LOL
  • #6
  • Jan 16, 2015 9:33am Jan 16, 2015 9:33am
Quoting ForexOracle
On January 15, 2015 due to a unprecedented move by the Swiss National Bank. FOREX the 5.3 trillion per day market will never be the same. USD/CHF moved over 2800 pips in 5 minutes EUR/CHF over 4300 pips in 5 minutes GBP/CHF over 3150 pips in 5 minutes I plan to record in this thread how forex retail trading will emerge out of this catastrophic event.
This shows how powerful is the decisions made by national banks. If we had access to a few such news in advance, we could make a lot of money out of Forex...
Trading is the hardest way to make easy money...
  • #7
  • Jan 16, 2015 9:35am Jan 16, 2015 9:35am
I think people are still digesting the magnitude of yesterday's events!!

What are the probabilities of a 4300 pip drop on a major pair in 5 minutes?

01-15-15 will go to the history and 300 years from today traders will study and talk about this date.

History is being written and we are in the very epicenter of it. Amazing.
So, you think you have rights? LOL
  • #8
  • Jan 16, 2015 9:40am Jan 16, 2015 9:40am
Quoting MathTrader7
{quote} This shows how powerful is the decisions made by national banks. If we had access to a few such news in advance, we could make a lot of money out of Forex...
I don't think so math.

You could see profits in your account but you could not trade.

Depending on your broker you still can't trade.

I guess what you could experience is the problems large traders encounter.

Large firms with billion dollar position can't only click the mouse and get out of positions.

They have to create a market in order to unload little by little.

Small traders got stuck and not able to fulfill their profits yesterday.
So, you think you have rights? LOL
  • #9
  • Jan 16, 2015 9:49am Jan 16, 2015 9:49am
Quoting ForexOracle
{quote} I don't think so math. You could see profits in your account but you could not trade. Depending on your broker you still can't trade.
I had no problem of trading/withdrawing with my broker yesterday. Unfortunately I missed the news, but nothing such as what happend to, for example, Alpari UK did happen to my broker. However, I see your point here...
Trading is the hardest way to make easy money...
  • #10
  • Jan 16, 2015 9:52am Jan 16, 2015 9:52am
You know when there is a big fire and people burn a piece of land ahead of it, so the fire can stop there.

The most popular theory around is that the SNB new Draghi would start a fire on the 22nd.

So they went ahead and burned the land around them, now they are safe.

The second theory is that the Euro is at or near bottom and the Swiss don't need the peg anymore.

Switzerland is the land of banks.

If there is something they know is how the banking plumbing works.

I doubt they did a wrong move. Controversial yes. Wrong? I don't think so.
So, you think you have rights? LOL
  • #11
  • Jan 16, 2015 10:01am Jan 16, 2015 10:01am
Quoting MathTrader7
{quote} I had no problem of trading/withdrawing with my broker yesterday. Unfortunately I missed the news, but nothing such as what happend to, for example, Alpari UK did happen to my broker. However, I see your point here...
The bulk of my money is with IB and by my researches they lost money but nothing terrible.

Recently I closed my account with oanda and transferred the money to 3 other brokers. One of them is FXCM

I always deal with multiple brokers.

The main reason is to hedge when they freeze their platforms and I'm in a big position.

The second is for this kind of situations. When a broker goes insolvent.

Now it seems we will see multiple brokers failure in the days to come.

Lets see if my risk management was enough or not!!!
So, you think you have rights? LOL
  • #12
  • Jan 16, 2015 10:06am Jan 16, 2015 10:06am
I have recently moved away from retail FX and into futures and US regulated providers. This happened when FXDD moved out of the US because they got caught with their hand in the cookie jar, and the regulators slapped them on the wrist. So they moved out of the country because they thought the regulations too onerous.

This news makes me get on my knees and be thankful I moved my accounts OUT of retail FX. I have tried to contact FXDD, now in Malta, no one will answer.

Trading with leverage is always a double edged sword, but 400:1?? Come on! Now even if you didn't have a trade on with the swissie your money is gone because everyone else's over leveraging ate up your liquidity. Smells like another bubble bursting....

Keep your money safe...use a well regulated exchange...deposit only enough to trade effectively...transfer out ALL profits as soon as you have them...How do you think the "big boys" do it?
  • #13
  • Jan 16, 2015 10:12am Jan 16, 2015 10:12am
Quoting gspajon
I have recently moved away from retail FX and into futures and US regulated providers. This happened when FXDD moved out of the US because they got caught with their hand in the cookie jar, and the regulators slapped them on the wrist. So they moved out of the country because they thought the regulations too onerous. This news makes me get on my knees and be thankful I moved my accounts OUT of retail FX. I have tried to contact FXDD, now in Malta, no one will answer. Trading with leverage is always a double edged sword, but 400:1?? Come on! Now...
gspajon, what futures broker are you using. I am thinking about moving to futures but have not really looked at it much. HOw is the price action/movement compared to spot forex?
  • #14
  • Jan 16, 2015 10:13am Jan 16, 2015 10:13am
FXCM Comments on Swiss Franc Movement


NEW YORK, Jan. 15, 2015 (GLOBE NEWSWIRE) -- FXCM (NYSE:FXCM) an online provider of forex trading and related services worldwide, announced today due to unprecedented volatility in EUR/CHF pair after the Swiss National Bank announcement this morning, clients experienced significant losses, generated negative equity balances owed to FXCM of approximately $225 million.
As a result of these debit balances, the company may be in breach of some regulatory capital requirements.
We are actively discussing alternatives to return our capital to levels prior to today's events and discussing the matter with our regulators.
  • #15
  • Jan 16, 2015 10:15am Jan 16, 2015 10:15am
Quoting gspajon
I have recently moved away from retail FX and into futures and US regulated providers. This happened when FXDD moved out of the US because they got caught with their hand in the cookie jar, and the regulators slapped them on the wrist. So they moved out of the country because they thought the regulations too onerous. This news makes me get on my knees and be thankful I moved my accounts OUT of retail FX. I have tried to contact FXDD, now in Malta, no one will answer. Trading with leverage is always a double edged sword, but 400:1?? Come on! Now...
It may be the case and we will have a "diaspora" of retail forex traders migrating to something else.

Thats a shame, since brokers like FXCM and others evolved so much in terms of fairness to clients!!

O love trading spot forex. I spent years specializing on the EUR/USD pair.

I can apply the same principles and trade something else.....but I would like to keep doing exactly what I'm doing now

Trading FX spot.
So, you think you have rights? LOL
  • #16
  • Jan 16, 2015 10:18am Jan 16, 2015 10:18am
Quoting gspajon
I have recently moved away from retail FX and into futures and US regulated providers. This happened when FXDD moved out of the US because they got caught with their hand in the cookie jar, and the regulators slapped them on the wrist. So they moved out of the country because they thought the regulations too onerous. This news makes me get on my knees and be thankful I moved my accounts OUT of retail FX. I have tried to contact FXDD, now in Malta, no one will answer. Trading with leverage is always a double edged sword, but 400:1?? Come on! Now...
true that the only asymmetric leverage that exists is in the stock market where you buy a dollar stock and multiply by 10-20 times its value without taking any leverage risk
  • #17
  • Jan 16, 2015 10:19am Jan 16, 2015 10:19am
Quoting Daytradesig
FXCM Comments on Swiss Franc Movement NEW YORK, Jan. 15, 2015 (GLOBE NEWSWIRE) -- FXCM (NYSE:FXCM) an online provider of forex trading and related services worldwide, announced today due to unprecedented volatility in EUR/CHF pair after the Swiss National Bank announcement this morning, clients experienced significant losses, generated negative equity balances owed to FXCM of approximately $225 million. As a result of these debit balances,...
They are in talks for a "rescue"!!!!

I hope they can manage to get something. They are not insolvent it is just a liquidity problem.

http://www.bloomberg.com/news/2015-0...on-rescue.html
So, you think you have rights? LOL
  • #18
  • Jan 16, 2015 10:21am Jan 16, 2015 10:21am
Quoting ForexOracle
...love trading spot forex. I spent years specializing on the EUR/USD pair. I can apply the same principles and trade something else.....but I would like to keep doing exactly what I'm doing now Trading FX spot.
Now you are talking ForexOracle...but HOW feasible is this going forward?

Regards,

Ty
My job: I speculate and manage risk.
  • #19
  • Jan 16, 2015 10:23am Jan 16, 2015 10:23am
You gotta love SNB It's a beautiful reminder for all of us that you can't take anything for granted in these markets
  • #20
  • Jan 16, 2015 10:27am Jan 16, 2015 10:27am
Quoting ForexOracle
{quote} I don't think so math. You could see profits in your account but you could not trade. Depending on your broker you still can't trade. I guess what you could experience is the problems large traders encounter. Large firms with billion dollar position can't only click the mouse and get out of positions. They have to create a market in order to unload little by little. Small traders got stuck and not able to fulfill their profits yesterday.
Indeed there were hard times yesterday for the majority of brokers and traders alike.
You say that firms with billions of dollars couldn;t 'click their mouse... well, I could and I am not in the range of billions with my account. I even took nice profits on the E/U (I don't trade CHF - stopped doing that a couple of years back).

Nobody is trying to kill the retail forex, there are a lot of money to be taken away from newbie traders, but indeed there is a very high probability for things to change, first of all leverage (just as you said before). Maybe the nano accounts will disappear and there will be a limit of minimum $1000 - $2000 (don't believe it will be higher than that)
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